Published
5 years ago on
April 07, 2018
In a bid to help early stage blockchain developments flourish, Coinbase is launching a new venture. The companyâs CEO, Asiff Hirji said;
âWeâre going to invest off our balance sheet into crypto companiesâ¦We will invest in companies that are in the space and are aligned with our values.âDespite these profits being small, when you look at the entire company, the fund is already off to a $15 million start, and is only set to get bigger. Hirjo was quick to point out that these investments will not have any bearing on the listing of coins on the exchange, saying;
âWe are not investing in currencies because we do not want even the appearance of a conflict of interest.âThey are looking for founders, as opposed to the next money-making cryptocurrency. They gave more detail in the investment options on their official blog. They wrote;
âYou may also see us invest in companies that ostensibly look competitive with Coinbase. There may be a nuance to the way these startups are building out their products. Or, in some cases, we may be comfortable investing in companies that are potentially competitive, because itâs in everyoneâs interest to see the ecosystem innovate. Weâre taking a long term view of the space, and we believe that multiple approaches are healthy and good.âThey are placing most of their focus on actually helping startups flourish and take off, rather than setting out very formal requirements that must be followed. This means that they will stress on formalising relationships like Venture Funds. They are unlikely to ask for a large piece of equity, or tokens from the company, before they actually offer any kind of support to them. Finally, they have also said that they will favour alumni, saying;
âPeople who have worked at Coinbase are encouraged to think entrepreneurially, and you can expect that weâll enthusiastically invest in ideas from our own alumni network.âFeatured Image Source: Flickr - Great Photo By Jon Russell