Boost VC made headlines back in 2013 for being one of the first big investors to open their doors to Bitcoin startups. Now, Boost VC is making headlines for opening up to the broader world of cryptocurrencies: the institutional investor announced that it will invest in token sales, also known as initial coin offerings or ICOs.
Today, ICOs are being used by a growing number of startups as a way to fund development. Similar to Indiegogo and Kickstarter, ICOs give developers easy access to funds while they continue to build. They also reward early customers with bonus tokens and other incentives. When the final product is released, customers can use these tokens to purchase products from the company.
The fact that Boost VC is investing in ICOs is a big deal. When ICOs first started to emerge, they were seen as a big threat to institutional investors. Startups, for example, could ignore traditional fundraising paths and launch an ICO instead.
Instead of seeing ICOs as a threat, Boost VC sees them as an opportunity. Here’s how Boost VC co-founder Brayton Williams explained it in a blog post earlier today:
“We are looking for talented developers looking to build the next protocols of the internet. We are looking for entrepreneurs building the future of decentralized companies.”
How Will Boost VC’s ICO Investments Work?
Williams claims that Boost VC will invest in all types of ICOs and cryptocurrency companies. However, the company will have certain specialization areas, including industries and companies they’ll target more than others.
Specifically, Boost VC is looking for companies that are building low-level protocols to underlie a decentralized internet. They’re also looking for companies that can create stable cryptocurrencies, develop tools to help run distributed autonomous organizations, and define new governance models.
Williams added that they may expand their targets in the future as the industry continues to involve.
Boost VC is being specific about its fundraising. The investor will give select companies between $25,000 and $100,000 to help build the foundation to a token sale or ICO. That money will be used to create the actual code, for example.
Boost VC Has a History of Investing in Cryptocurrencies
Boost VC has a reputation for investing in the world of blockchain technology. Over the past four years, the company claims to have invested in more than 100 blockchain founders from a diverse set of firms.
Most recently, they invested in cryptocurrency fund Polychain Capital along with Aragon, a decentralized app for blockchain organizations. Aragon, which uses Ethereum to provide a decentralized corporate management platform, launched the ICO for its ANT token on Wednesday, May 17.
Obviously, the world of altcoins and cryptocurrencies is exploding with growth at the moment. Boost VC plans to take advantage of that. However, it’s an industry that’s fraught with ambitious companies that may never achieve their goals – so it remains to be seen how successful Boost VC’s venture in the world of blockchains will be.