Patrick is an accounting & economics graduate, a Cryptocurrency enthusiast, and a Blockchain technology fanatic. When not crafting informative pieces on any of the above subjects, he will be researching on how the Blockchain technology can transform the world, particularly the financial space.
PayPal confessed that this is its first time to become a Limited Partner in a blockchain or digital asset-focused fund.
The two tech-savvy firms are green to the Cryptocurrency VC. Though each of them has previously invested, directly, in digital asset startups, working together as Limited Partners (LP) is a different ball game. The deal technically means that an external manager will be tasked with placing the equity investment in their stead. PayPal via correspondence, confessed to Coindesk that this is the company’s first deal of such nature, particularly with a VC.
In matters of venture capital, the Company is a renowned figure, actually one of the companies that have been around for quite some time. Blockchain Cap. owns over $1.5 billion, which is under management. Spencer Bogart, a general partner in the company revealed. The general partner also added that the company’s fifth funding got backed by universities and notable pension funds. However, he did not mention names.
From Bogart’s point of view, the two companies are very eager to invest in cryptocurrencies, a niche they have confidence in but need expert help to navigate. Bogart was quoted saying that steering startups to secure agreements with the big boys like Visa and PayPal was very fulfilling.
Jose Fernandez, Paypal’s crypto lead was quoted saying that if they invest in Blockchain Capital’s fund, it will give them an opportunity to learn from the pace setters in the Blockchain and digital assets niche. Blockchain is looking forward to pump $300 million in the venture, whose size can’t be compared to thé big boys like Coinbase and Kraken just yet, Bogart further added. Blockchain Capital began deploying capital over a year ago but a bigger share if its new fund is awaiting.
Purpose of the New Fund Supported by Paypal and Visa
The new funding is meant to support startups in building decentralized finance (DeFi) and non-fungible tokens (NFTs), but all the while, avoiding the digital assets, Bogart claimed. The last time Blockchain Capital’s fund was announced was in 2018 March. The fund was about $150 million.
Blockchain Capital’s fifth fund will definitely have the right outcome, considering that the big boys, PayPal and Visa are involved. Besides, the past funds were successful which is an indicator of what lays ahead. Where such companies, with a global outlook, are involved, you can be sure that proper research was done before the decision was arrived at.