Coinbase Launches Early-Stage Venture Firm
Despite increasing regulatory moves by governments and tanking values, cryptocurrencies continue to attract a steady stream of entrepreneurs and investors interested in exploring the potential of this futuristic technology.
Now, Coinbase, one of the world's most popular cryptocurrency exchanges is also getting into the crypto-investment space with the launch of a new early-stage venture fund aimed at cryptocurrency startups. This gave rise to Coinbase Ventures.
Coinbase’s exponential rise to fame had coincided with the massive growth in value of cryptocurrencies. This time frame saw the rise of many blockchain based companies rise, however, some companies that didn’t appeal to mass audience didn’t make it, even though they had good business ideas that solve real-world problems. Coinbase, through Coinbase Ventures, wants to help such companies and much more.
How Will Coinbase Ventures Work?
With Coinbase Ventures, Coinbase aims to provide financing to promising early-stage companies that have teams and ideas that can move the crypto space forward in a positive and meaningful way. They are said to begin the investment within a week and to maintain a more positive relationship in the crypto ecosystem, they do not mind investments in their competitors too.
Emilie Choi, Head of Corporate and Business Development and Business Operations at Coinbase commented:
”Here at Coinbase, we’re committed to creating an open financial system for the world. We’re hard at work building our own set of products. And we’re also eagerly rooting for the best and brightest minds in the crypto space, both in and outside of Coinbase, to develop products and services that create a meaningful user and customer value…That’s why today, we’re announcing the formation of Coinbase Ventures. We’ll be providing financing to promising early-stage companies that have the teams and ideas that can move the space forward in a positive, meaningful way.”
Their President and COO added:
“We’re going to invest off our balance sheet into crypto companies. We will invest in companies that are in the space and are aligned with our values.”
He added that the fund’s profits would be “de minimis” (as little as possible) in the context of the larger company, but said that it had already raised $15 million and was likely to raise more in the future.”
To avoid conflict of interest Coinbase has even stated that they are not going to be investing in cryptocurrencies.