Blockchain Capital, a venture capital firm which invests in companies who use blockchain, is planning to raise a third fund via a combination of a traditional limited partnership and a digital token.
The overall figure raised is expected to be $50 million, according to a Reuters report.
“The partners decided to pursue a parallel offering of Ethereum-based tokens, issued by a Singapore entity, that would represent an evergreen fractional ownership in a new fund called Blockchain Capital II Digital Liquid Venture Fund LP,” the company noted in its press materials.
Among the companies in Blockchain Capital’s portfolio include BitPesa, Blockstream and Coinbase. The company notes among its exit successes ChangeTip, acquired by Airbnb, and Authy, acquired by Twilio who went on to their own successful IPO.
The VC firm cited a generally fallow period of tech IPOs today as well as an acknowledgement of blockchain technologies moving beyond Bitcoin and financial services as part of the move. “As enterprise use cases for the blockchain proliferate across industries beyond financial technology, this capital raise gives Blockchain Capital the opportunity to maintain its leadership position in supporting the broadening ecosystem,” the company noted.
The dearth of successful companies going public last year – with Twilio being an honourable exception – was covered in detail by Bessemer Venture Partners’ Byron Deeter. IPOs in the cloud space in particular fell to just five in 2016, the lowest since the financial crisis of 2008, yet the volume of M&A activity made up for it as companies jockeyed for position.
Blockchain Capital’s influence within the industry was bolstered earlier this year by the appointment of Spencer Bogart, previously an analyst at Needham & Company, as managing director and head of research.
The full offering is expected to be made available on April 3 via vctoken.com.