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Blockchain Capital LLC , which backs startups that use the technology best known for supporting bitcoin, plans to raise a new $50 million fund partly by issuing its own digital tokens, becoming the first venture fund to do so.
- The San Francisco-based company seeks to raise a portion of its third blockchain fund through an initial coin offering, or ICO, of tokens and the larger part from traditional venture-capital investors who typically contribute a minimum, Managing Partner Brock Pierce, who is also chairman of the Bitcoin Foundation, said in an interview.
- Up to now, ICOs have been limited to startup entrepreneurs, who raised about $270 million last year from coin offerings and crowdfunding, according to blockchain researcher Smith & Crown.
- Venture-capital firms’ investments in bitcoin and blockchain startups dropped 18 percent to 132 deals last year a from 2015 high of 161, according to CB Insights.
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Money raised through ICOs skyrocketed last year, and the offerings continue , even though not all projects supported by ICOs have been successful.
Blockchain Capital LLC, which backs startups that use the technology best known for supporting bitcoin, plans to raise a new $50 million fund partly by issuing its own digital tokens, becoming the first …
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