Nestcoin, a fintech development company focused on modern finance projects, recently secured a substantial investment of $1.9 million in a strategic funding round. The leading investor in this round was Hashed Emergent, a prominent Web2.5 fund that primarily supports emerging market innovators. Notably, Nestcoin attracted participation from both existing investors, such as Alter Global, Magic Fund, CMT Digital, and 4DX Ventures, and new investors, Adaverse and Base Ecosystem Fund.

This funding initiative comes on the heels of a challenging year for Nestcoin, marked by significant setbacks. Following the FTX cryptocurrency exchange’s implosion, which transpired nearly a year ago, Nestcoin faced considerable losses, including cash and stablecoins. Consequently, the company was compelled to reduce its workforce. Initially, Nestcoin had ambitious plans to create and invest in web3 products across various sectors, including decentralized finance (DeFi), media, digital art, and gaming, catering to customers in emerging markets. However, these unforeseen events necessitated a profound shift in strategy. CEO Yele Bademosi acknowledged that Nestcoin transitioned from being a venture studio and investment holding company to focusing solely on the development of Onboard, a critical pivot in their corporate journey.

Why the Investors Invested

The motivations behind this significant investment are multifaceted and rooted in the evolving landscape of blockchain technology and global financial markets. Notably, the investors’ decision to allocate substantial capital to Nestcoin can be attributed to several key factors:

• Strategic Vision: Nestcoin’s refocused mission on the development of Onboard, a noncustodial wallet, aligns with a broader trend in the financial industry. Investors recognize the growing importance of decentralized finance and the shift toward self-custody solutions. Onboard’s emphasis on security, ease of use (with email-based access), and its potential to provide equitable access to financial services in emerging markets make it an attractive proposition.

• Blockchain Market Dynamics: The blockchain and cryptocurrency landscape has matured significantly since the initial fervor of NFTs, DeFi, and web3 projects. Investors now seek more robust, sustainable ventures, and Onboard, integrated into Coinbase’s Base ecosystem of decentralized apps (dApps), presents a compelling long-term opportunity.

• Backing by Established Entities: Nestcoin’s ability to secure funding from prominent industry players like Binance, FTX, and Coinbase through the Base Ecosystem Fund underscores its credibility and potential for growth. The backing of these influential partners enhances investor confidence in the project’s prospects.

• Global Expansion: Onboard’s ambitions extend beyond its initial Nigerian user base, signaling a commitment to global expansion. This aligns with the overarching vision of bringing blockchain technology to a wider audience, appealing to both tech professionals and enthusiasts worldwide.

A Look at Nestcoin:

Nestcoin, founded just two years ago, initially served as a platform for experimenting with new web and crypto products. Some of these ventures included Breach, a media platform; Brunch, a cryptocurrency-based group messaging tool; and Metaverse Magma (MVM), a gaming DAO. However, the company has since evolved into a specialized development firm for Onboard. MVM now operates independently as a separate entity.

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Onboard, which launched in April, offers a noncustodial wallet and competes with established global services like MetaMask and Trust Wallet, as well as domestic services like Ejara. It allows users to securely store and protect cryptocurrencies, digital assets, and tokens. Notably, Onboard distinguishes itself by offering email-based access instead of the traditional seed phrases, enhancing user convenience and security.

Furthermore, Onboard facilitates P2P trading of digital assets for merchants, providing opportunities for profit generation. Additionally, the development of a virtual card product to enable stablecoin spending across 160+ countries is in progress.

In conclusion, Nestcoin’s recent funding round and strategic shift reflect the evolving dynamics of the blockchain industry, with a focus on self-custody solutions and expanding financial access. Onboard, integrated into Coinbase’s ecosystem, aims to drive global adoption, ultimately contributing to the broader vision of democratizing modern finance. The support from prominent investors underscores the project’s potential in an increasingly competitive and cautious investment landscape.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

Nestcoin’s pre-seed round was closed with a total of $6.45 million raised. The Lagos-based firm was established in November 2021 with the goal of developing, deploying, and investing in web3 apps.

We are excited that our investors are backing this ambitious plan to create a future where billions of people in frontier markets have access to the opportunities that crypto brings. With this financing, we will continue to grow our diverse team, which already spans nine countries, expand our product offerings, and invest in more ventures aligned with our vision,” Nestcoin CEO Yele Bademosi.

Distributed Global, Alter Global, Serena Ventures, Alameda Research, A&T Capital, MSA Capital, 4DX Ventures, Raba Capital, Goat.vc, Social Capital, Old Fashion Research, CMT Digital, Electric Capital, CoinFund, gumi Cryptos Capital, and DeFi Alliance are among the current investors in Nestcoin.

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With the fresh capital, the company will invest in further products to help consumers in frontier areas such as Africa, Latin America, Asia, and portions of Europe adopt cryptocurrency and gain financial freedom.

Nestcoin is developing crypto-native products in addition to trading and investing, with an emphasis on increasing crypto acceptance in Africa. Nestcoin was founded by Yele Bademosi (CEO) and Taiwo Orilogbon (CTO).

Even while Africa is still lagging behind the rest of the globe in terms of crypto acceptance, progress is being made. According to a survey by Chainalysis on crypto in Africa, the continent’s cryptocurrency sector has risen by about 1,200 percent in the last year, outpacing every other region. As a result of this growth, Africa’s crypto ecosystem is now worth $105.6 billion, according to the research.

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Frontier markets, such as Africa, have more reasons than most to adopt crypto due to global disenfranchisement, inflation, inadequate governance, economic uncertainty, and high unemployment rates. Nestcoin demonstrates how this new future is feasible by offering a doorway for young people in these places to learn about and participate in cryptocurrency.

“Our focus is on users in frontier markets, and we have already acquired users and customers from several countries across different continents”, Yele Bademosi told Benjamindada.com, adding that Nestcoin is a fully-remote company with team members from nine countries across the world.

Nestcoin launched Breach, a media platform that uses content to drive crypto adoption, in November 2021. “We’ve gotten close to 6,000 subscribers in the months since we began Breach by educating individuals and breaking down web3 ideas for them. Every week, we send out two newsletters, hold community events, and produce original material “, said Bademosi.

Metaverse Magna (MVM), a crypto gaming guild that enables gamers earn up to $1,000 per month, was also announced by the business. According to Bademosi: “In the first six weeks of public operations, MVM grew its community to approximately 10,000 people, with about 400 active gamers. We’re still in the early stages, but we’re getting closer to our aim of giving individuals in frontier markets financial freedom.’’

Nestcoin is also working on a number of other products that will give compelling use cases for cryptocurrency.

Despite the promises of web 2.0, economic prosperity and opportunity have been focused exclusively in developed markets. New solutions, on the other hand, have a history of taking off where the need is greatest. This may be seen in how mobile technology has helped Africa overcome its telecommunications deficit and open up new economic prospects.

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Nestcoin has invested in Lazerpay to enable companies to accept crypto payments as part of its efforts to democratize access to the economic prospects afforded by crypto and web3. The E-choke social token was launched in November in collaboration with Davido and Bitsika.

Nestcoin web3 Nestcoin web3

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer