Africa has the potential to become the global capital for Bitcoin development — Abubakar Nur Khalil

Recursive Capital was recently backed by Jack Dorsey, the Founder of Twitter in a Fund 1 raise alongside other investors like Pete Briger and Jeff Booth.  

In this Interview with Naijaonpoint, He discussed the role of the Bitcoin Ecosystem in Africa and what he is hoping to achieve with Recursive Capital in the African space.  

Abubakar: Recursive was born from the realization that for Bitcoin to thrive in Africa, it will need efficient capital allocation to companies built locally for people on the ground. As such, the best approach would be for someone on the ground with a great understanding of the Bitcoin ecosystem and technology to embark on this.  

As for our exclusive focus on Bitcoin and Africa, we initially branded ourselves in our initial year as Web 3, being what we classified as the combination of online sovereignty via Bitcoin and data sovereignty. We realized we needed a more precise focus after publishing our launch post a year ago to clarify what we were looking for. An exclusive emphasis on Bitcoin best captured the essence of the emerging development I tried to articulate. 

We believe Bitcoin is the only technology that will still be around over the next couple of decades, as such, all developments for products, tools, and services should be built on this resilient system that enables wide use cases such as energy grid management and electrification via Bitcoin mining to financial freedom and access to a monetary rail for cheap instant global settlements to ensure long-term availability and lasting impact. 

As captured in our thesis, a primary driver revolved around the notion that Africa’s unique problems make it a prime location to become the global Bitcoin development capital, which will naturally lead to the creation of the most innovative and impactful native Bitcoin companies — i.e., companies that most effectively reflect the anti-fragility, resilience, and ethos of Bitcoin. 

Abubakar: The fund only invests in Bitcoin companies. 

A Bitcoin company is any company that operates with the core belief that Bitcoin is the future global monetary asset and internet-native digital cash. It develops products and services that utilize the Bitcoin protocol stack, including associated layers like the Lightning Network, to create value for customers. The company’s success is closely tied to the success of Bitcoin itself, and it fosters innovation both technically and in its business models across the protocol stack. 

Given we strictly make equity investments, we do not invest in companies looking for alternative investment support or those who plan to roll out tokens or coins. 

As for criteria, we bucket it out to two, companies with a reasonable track record, value proposition, and solving an actual problem using Bitcoin technology, and for companies at earlier stages the focus is on the capacity of the founders, the potential growth and value proposition of their idea, and how we could help make it a reality. 

Abubakar: We exclusively operate in the Bitcoin ecosystem. Additionally, Recursive does not operate from Kano. However, as someone based and from the north, in trying to support entrepreneurs building for Bitcoin in this region, I have noticed a large amount of talent there, as evidenced by companies we have invested in, like Bitnob, whose founder is from the north.  

I have continued to see developers from programs Btrust Builders has run come from the north. In terms of our impact in that region, it has been in the form of helping incubate and support companies and entrepreneurs from that region and educating them on what it means to build on Bitcoin.  

I have continued to see developers from programs Btrust Builders has run come from the north. In terms of our impact in that region, it has been in the form of helping incubate and support companies and entrepreneurs from that region and educating them on what it means to build on Bitcoin.  

Those just starting their journey can take advantage of the developer resources Btrust provides, primarily via Btrust Builders, including the recently launched Bitcoin developer meetup in Kaduna. 

Abubakar: I foresee Africa as becoming the global Bitcoin development capital very soon. 

I genuinely believe that we are an excellent point for developers given the more significant amount of funding to support careers in the Bitcoin ecosystem, and especially resources via programs like Btrust Builders, which offers a systematic pipeline for developers to become Bitcoin developers who can get jobs in Bitcoin companies or get supported by organizations like Btrust via grants to work on Bitcoin Open-Source Software full time. For both the latter and former, we have numerous case studies to point to in the form of alums from the Btrust Builders programs, for example. 

Abubakar: There are quite a few, so I’ll narrow it down to one of our companies, Bitnob. Over the years, they set the stage — and can be mainly credited — for starting the Dollar-Cost Averaging and savings culture for buying Bitcoin in Nigeria, being the first company in Africa to implement the Lightning Network in 2022, which allowed users for the first time to send and receive Bitcoin globally instantly and cheaply. They continued to innovate around this and are one of the leading Bitcoin companies building tools on the Lightning Network and supporting novel features like lightning addresses. Lastly, having its infrastructure all built in-house has been a huge distinguishing factor between it and its competitors. 

Abubakar: Builders can position themselves strategically by learning and equipping themselves with the right tools and knowledge to solve our burning problems. In doing so, these developers can benefit on three fronts: