Blockchain Capital LLC intends to raise $50 million from its partners as well as selling a portion of its digital tokens. This will be the third round
Blockchain Capital LLC intends to raise $50 million from its partners as well as selling a portion of its digital tokens. This will be the third round of funding for the venture capital firm. This latest round of funding is set to boost Blockchain Capital’s quest for greater uptake in the financial market.
Blockchain Capital’s primary activity is to further the growth of blockchain technology. It does this by funding startups and existing companies that are using blockchain.
Blockchain is essentially a ledger of all the executed Bitcoin transactions. It is the software that underpinned Bitcoin. It has continued to grow as further blocks have been added to it with new sets of recordings.
Firm partners to contribute the largest portion
In an interview with Reuters, the company’s co-founder Brock Pierce announced that most of the funding would be contributed by the firm’s partners, with the rest being raised through the sale of Blockchain Capital’s digital tokens in what is being termed as an “initial coin offering” (ICO). The digital coins are called BCAP.
New way of raising funds
Over the last 12 months, there have been more and more digital startups raising cash without having to depend on venture capital firms or banks. The new way of raising cash is through the creation and sale of company currencies in offerings. Blockchain Capital is set to be the first venture capital firm to offer its token for sale. The tokens issued will be open for sale on different digital asset exchanges.
Pierce said the ICO would be through a Singapore entity that Blockchain Capital will create. Further details of the sale are set to be disclosed in a memorandum that will be published at the start of next month.
ICOs continue to grow
In 2016, there were 40 ICOs and through the ICOs a total of $225 million was raised according to altcoin research firm Smith+Crown. This marks a sharp rise from the 9.8 million raised in 2015.