Lazerpay shuts down
Founded in 2021, Lazerpay provided a platform for merchants to accept payment in cryptocurrencies. The business focused on driving financial inclusion by promoting crypto adoption. The startup has been facing some headwinds as it downsized in November 2022 and has been seeking to raise funds.
It announced yesterday that it was shutting down after fundraising talks fell through. The company said it had enabled over 3000 businesses to adopt crypto payments and grow their business. In its official announcement, the firm advised customers to withdraw their funds before 30 April 2023. It stated that it plans to sell its intellectual property to anyone interested in developing it.
So what?
The rate hikes by the Federal Reserve have had far-reaching consequences, as funding for startups, especially in Africa, have been harder to come by. A year-on-year analysis shows that funding is down 29% from Q1 2022.
Furthermore, Lazerpay was trying to raise funding in one of the least favourable periods for crypto startups. The recent demise of FTX and the recent explosion of interest in artificial intelligence means capital has found a new attraction, leaving the cryptocurrency startup space out in the cold.
Lazerpay was set to serve a certain future, one where crypto was second to fiat and widely adopted as a means of payment, and that world has failed to materialize.