About a week ago, Barry Silbert, the founder and CEO of Digital Currency Group, sold his earlier startup dubbed SecondMarket, which aimed to facilitate the exchange of shares for private companies, to NASDAQ.
Well, and now his Digital Currency Group manages to close a round from Bain Capital Ventures, MasterCard, Transamerica Ventures, FirstMark Capital, and others.
“What we’re building is the largest early-stage investment portfolio in the digital currency and blockchain ecosystem,” Silbert says. “We’re also going to start high-growth businesses of our own, and develop a global platform and network to support our companies.”
Launched in 2015, Digital Currency Group develops Bitcoin and Blockchain technology-related firms focusing on service businesses able “to fill important gaps in existing market infrastructure,” reads SiliconAngle.
It’s necessary to say that this firm will embrace Genesis Global Trading, an over-the-counter bitcoin trading firm, and Grayscale Investments, a digital currency asset management firm. Both were originally created at SecondMarket, but were not to be sold to NASDAQ. Plus, Grayscale Investments manages a publicly-listed vehicle that raised over $60 million.
Silbert says that the fact that DCG is structured as a holding company rather than a tradition investment fund may bring benefits: “Being structured as a company, versus a fund, allows us to evolve with the industry given our permanent capital base and flexible mandate…It is our view that broad exposure with the optionality to concentrate our focus is a winning strategy.”
“I wanted to work with firms who have a long-term perspective, and were willing to explore with us and invest not only money, but real organizational and intellectual capital into building businesses and partnerships that will enable us to unleash value in new, unprecedented ways,” added Barry Silbert.
Digital Currency Group strives to be the most active seed investor in the Bitcoin and Blockchain industry. Currently, the company holds investments in about 50 startups covering 15 different countries, reports TechCrunch.
“We’re still far away from Bitcoin being a functional currency, and I don’t think we’ve gotten closer lately,” Silbert noted. “First it’s going to function as a speculative investment that will drive up the price and create a larger monetary base that will draw in Wall Street to trade it. Then more merchants will come on board. As it gets more liquid, as a [payment] rail it will become a real alternative to the existing money transfer systems in the world today. I really believe that’s what will happen, and I want DGC to be a big part of it.”