Blockchain Capital looks to ICO for new $50m fund

Blockchain Capital is planning to make an initial coin offering (ICO) to raise capital for its new $50m fund.

The San Francisco-based firm aims to raise $40m from limited partners in the traditional manner as well as $10m through the sale of its own digital tokens for what will be its third fund to date.

ICOs are becoming a more popular way for companies to raise capital as it allows them to sell tokens representing equity without the involvement of banks of venture capital firms.

Issued by a Singaporean entity the Ethereum-based tokens will represent a fractional ownership in a fund called Blockchain Capital III Digital Liquid Venture Fund.

These can be tradable on digital asset exchanges, making liquidity much more accessible than in traditional investing.

The firm invests in startup using blockchain as the underlying technology and counts 43 companies including BitFury, Coinbase and Xapo among its portfolio.

The new fund comes just more than a year after Blockchain Capital raised $13m for its second fund focused through traditional VC routes.

Details of the ICO will be disclosed a memorandum published on April 3.

Copyright © 2017 FINTECH GLOBAL

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