Pantera Capital expects to raise $100 million by summer’s end, which seems to be ambitious even for the company that has been doing pretty well with bitcoin, which it began buying when the currency was valued at $65.
Dan Morehead, Pantera’s founder, says that the team has been working for months to set up a couple of fund entities. Hiring of Joey Krug, who previously co-founded Augur, was part of the strategy. Reportedly, he will be co-managing the fund.
Krug explains why he decided to join the fund: “The #1 reason for startup failure is due to lack of product-market fit, which Augur will never achieve if it is not liquid. By partnering with Pantera, I can help make a big dent in this problem. For Augur to succeed, it needs fair prices and solid spreads. Dan Morehead at Pantera was previously CFO at Tiger Management and has managed billions of dollars in assets, so if anyone knows trading in the blockchain industry, it is him”.
Morehead doesn’t reveal the name of major investor but says that they have attracted institutions and individuals who are interested in getting exposure to the token market. This includes a number of VCs and venture funds. There could be more venture companies but most of them have prohibitions in fund documents that forbid them to invest directly in tokens or bitcoin.
Explaining the operation of the fund, Morehead says that they will purchase pre-sale ICOs, as they aim to buy tokens prior to the public sale, then again in the public auction. Thus, they will have a discount to the ICO price by getting in early, when it’s just a team and a whitepaper. The fund will provide the right connections concerning marketing, recruiting or business development.
Earlier this month, Pantera, which is considered to be the first U.S. bitcoin investment company, announced that it started buying other digital coins. As Paul Veradittakit, Pantera Vice President, said that company “is opportunistically adding blockchain-based coins to its $25 million venture fund”.
Pantera Capital is one of the largest institutional owners of bitcoins. It targets to become a catalyst for widespread blockchain adoption and innovation.
The company cooperates with some of the most promising entrepreneurs and top investors in the space thus creating a diversified portfolio and bringing industry-specific value-add resources to its portfolio companies.
Pantera’s aim for the next several years is to significantly contribute to the regulated and responsibly managed establishment of blockchains and cryptocurrencies in the global economy.
KICKICO, a protocol built on Ethereum for more transparent ICO and crowdfunding, has published a whitepaper addressing many problem areas within funding campaigns. The whitepaper summarizes the company’s efforts to address these problems of campaign fraud for ICOs, crowdfunding, and crowdinvesting and to break the language barrier by making information more accessible.