Top Worldwide VCs and Investors in Bitcoin and Blockchainby Fintechnews Switzerland January 31, 2017
Blockchain, a type of database that records an ongoing list of tamper-proof records, has created a lot of hype in the financial services industry, promising to allow banks to save billions in infrastructure costs and significantly increase efficiency.
The world’s largest financial institutions are all involved in blockchain technology somehow: some have opted to invest in startups in the ecosystem, others have launched dedicated innovation labs, and others have joined blockchain consortia.
Since 2012, over US$1.3 billion has been invested in the space, according to CB Insights. But who exactly are betting big on blockchain and bitcoin?
Today, we look at the world’s top VCs and investors in the space.
Digital Currency Group
Located in New York City, Digital Currency Group is a venture capital company focusing on the digital currency market.
Launched in 2015 by Barry Silbert, who previously founded SecondMarket, Inc., Digital Currency Group has been an active seed investor in the digital currency industry with over 50 investments in nearly 20 countries.
In addition, Digital Currency Group owns and operates Genesis Trading, one of the industry’s leading bitcoin brokerage firms, as well as Grayscale Investments, the largest digital currency management firm, which manages the first publicly traded bitcoin investment vehicle, the Bitcoin Investment Trust (symbol: GBTC).
Digital Currency Group has invested in the likes of Filament, Keza, Purse, Gem, Coins.ph and ShapeShift. In January 2016, it acquired CoinDesk, a global media, research and events platform specializing in the digital currency space.
Based in San Francisco, Blockchain Capital is a venture capital firm investing in blockchain-enabled technology companies. The initial fund was launched in 2013 and was the first dedicated VC fund dedicated to the bitcoin and blockchain space.
The firm has invested in over 40 companies in the last three years including Abra, BitFury, BitPesa, BitAccess, BTCC, Chain, Coinbase and Ripple.
Founded in 2013, Pantera Capital is an investment firm based in San Francisco that focuses exclusively on ventures related to blockchain and digital currency. Pantera is one of the largest institutional owners of bitcoins.
It was founded by CEO Dan Morehead, a former chief financial officer and head of macro trading at hedge fund Tiger Management.
Pantera Capital has invested in 21 Inc., Ripple, Bitstamp, Circle, Chain and Coins.ph, among others.
Founded in 1994, RRE Ventures is an US-based venture capital firm focused on investments across several areas including software, Internet, mobile, financial services, consumer and enterprise hardware.
RRE Ventures has raised US$1.5 billion across seven funds. In the bitcoin and blockchain space, RRE Ventures has invested in 21 Inc., Abra, BitPay and Chain, among others.
Andreessen Horowitz is a private American venture capital firm founded in 2009 by Marc Andreessen and Ben Horowitz. It invests in tech startups from seed to growth and has over US$2.7 billion under management.
In the bitcoin and blockchain space, Andreessen Horowitz has invested in 21 Inc., Coinbase, OpenBazaar and TradeBlock, among others.
Draper Associates is an early stage venture capital firm founded in 1985 by Tim Draper. It focuses on sectors that include consumer technology, fintech, healthcare, manufacturing, education and government tech, and is best known for investments in companies such as Tesla, Skype and Baidu.
In the area of bitcoin and blockchain, Draper Associates has invested in the likes of Bitwage, Stampery and Factom.
Union Square Ventures
Union Square Ventures is an American New York-based venture capital firm that manages assets totaling US$1 billion, as of March 2016. The firm is one of the top returning venture capital funds in the world and has had made a billion dollar exit every year since 2011 including Zynga, Indeed, Tumblr, Twitter, Lending Club, Etsy and Twilio.
In the blockchain space, Union Square Ventures has invested in the likes of Blockstack Labs and Coinbase.
Founded in 2012, Ribbit Capital is a global venture capital firm focused on fintech that invest from seed to later stage.
It was founded in Meyer Malka, a Venezuelan serial entrepreneur known for being the co-founder of online brokerage platform Patagon which was sold to Banco Santander SA for US$750 million 2000.
Ribbit Capital focuses on companies involved in lending, payments, insurance, accounting, tax preparation and personal financial management.
In the bitcoin and blockchain space, Ribbit Capital has invested in the likes of BTCJam, Blockstream and Xapo.
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