Although blockchain technology has seen major traction in the financial market, it’s been slow on the uptake in other industry sectors. Anyone utilizing the technology as a whole for its business — or planning to in the near future — is about to see a major boost to help push along both its use and development.
Venture capital firm Blockchain Capital announced plans this week to raise $50 million. This round of funding will be its third round, raised from its partners and by selling some of its bitcoins.
Blockchain Capital exists to further the development of blockchain technology through funding companies and startups that are using it. This investment firm may be onto something, as a recent study from Research and Markets shows an increase from $2.5 billion in 2016 global annual revenue to $19.9 billion by 2025.
What makes this deal unique is the fact that the venture capital firm is raising funds through an “initial coin offering” (ICO), which is the selling of its digital tokens. This action would mark the first time a venture capital firm has raised funds through selling bitcoins.
Blockchain Capital’s Co-Founder and Managing Partner, Brock Pierce, commented on this first-of-its-kind situation to Reuters: “Our view is that these ICOs are going to be hugely disruptive to the early stage ecosystem, because the biggest problem with early stage ventures, whether you’re a limited partner in a fund or an angel investor or a VC (venture capital) investing in a startup, is just a general lack of liquidity.”
Unfortunately, the details of the firm’s ICO won’t be disclosed until its April 3 publishing of its offering memorandum.
What does this mean for blockchain technology?
Given the projected annual revenue and the increasing number of companies beginning to invest in the technology, it’s safe to say this type of investment will help expedite it into the mainstream.