The continuously falling prices of Cryptocurrencies doesn't mean that the blockchain is doomed. On the contrary, most commentators are betting for the next technological revolution to be via this route. To this end, many companies are looking for ways to address some of the biggest problems that cryptos face. And then there are companies that look to provide the monetarily backing required to address those concerns. This is what seems to have happened for Algorand, who now has a war chest of about $100 million, supplied by Algo Capital.
The Algorand protocol was designed by MIT professor, cryptography pioneer, and winner of the prestigious Turing Award, Silvio Micali. Based in Boston itself, Algorand looks to address the key issues of blockchain — namely, decentralization, scalability and security. The protocol looks to provide the groundwork for new and existing projects to be able to effectively work the emerging decentralized economy. This proof-of-stake protocol is unique and permissionless. It can thus support the large scale that blockchain needs to enable mass participation and high transaction rates.
In their statement, Algo Capital states that they are a venture capital fund that invests in promising companies that are making use of the decentralized Algorand platform, with a strong focus on fintech applications. Algorand is also an investor though Algo Capital is managed independently and looks to help and assist with ” emerging disruptors that are built leveraging the decentralized economy.”
Algo Capital is a venture capital group that looks to focus on blockchain based projects. In a press statement on the 11th of December, they announced their intention to invest $100 million into companies building on the Algorand decentralized platform.
Discussing this, one of the Managing Partners of Algo Capital, Arul Murugan explained “[It] signifies an invaluable opportunity to support and grow some of the world’s most promising startups that are building on the business blockchain of the future.” He expressed confidence in the ecosystem and estimated that it can be used to make use cases that will translate to real business. This will undoubtedly encourage the wider use and adoption of the blockchain. He went on to add ” Algo Capital looks forward to enabling and supporting entrepreneurs to leverage the unique benefits of the Algorand platform in innovative ways that will change the world.”
Leadership Key to Success
Another Managing Partner at Algo Capital, David Garcia also noted, “I’ve had the opportunity to learn what succeeds and what fails, beyond just the technology.” With nearly a decade worth of experience in the field, he recognized the clear potential that the Algorand ecosystem has and thus had no problems joining in. Talking about the setup he says,
“We invested in Algorand due to the outstanding technical and business leadership of its team. We also recognized the massive potential and have joined forces with others to launch Algo Capital.”
In keeping with those ideas, Steve Kokinos, the newly anointed CEO of Algorand has also expressed his faith in the technology and feels the backing of Algo Capital will provide a significant momentum to help introduce businesses move into a decentralized economy.
Good Time for Algorand
Silvio Micali's Algorand protocol aspires to present solutions to the biggest problems that have thus far hindered blockchains inclusion into mainstream solutions. Issues that should be resolved by this POS protocol.
This venture fund is the latest in a long list of breakthroughs and thrilling developments. Recently the company also had an equity investment worth $62 million.
Along with that, the company now has experienced hands guiding the sails. Apart from Steven, who was also the founder of cloud-based unified communications platform Fuze; the company also got on board Sean Ford as COO, co-founder of uPromise and former CMO at LogMeIn, Inc.
One of the biggest hinderances to a great idea is the dearth of investment. This move should ensure that at least lack of funds does not deprive the industry of any good ideas.