TMT Crypto Fund – Blockchain Start Up Initial Coin Offering Investments?
Just over a year ago, the buzz around cryptocurrency, particularly ‘Bitcoin’ became a part of everyday conversation. By today, cryptocurrency has taken the world of finance by storm, becoming the fastest growing form of currency available.
Since last year, new forms of cryptocurrency have emerged as the demand increases. What TMT investments has in store is a brilliant way to invest in their own business while allowing you a platform to invest in the world of cryptocurrency.
TMT Investments, a tech firm with an estimated $70 million being managed with previous investments in companies like the storage cloud firm Backblaze, recruitment analytics firm Gild, And eCommerce startup Wanelo. Cryptocurrency has now become their interest with a recent announcement on their $60 million fund that will invest exclusively in firms that focus on blockchains. Blockchains are the current digital ledger technology that is the base for bitcoin, ether, along with similar cryptocurrencies.
TMT Investments partners, Igor Shoifot and Julian Zegelman have a goal to help other technologists by offering a link, a more well rounded understanding between technology and business. It has been their experience that that blockchain startups are led by people with brilliant technical talent, but lack in business acuity. In a nutshell, being a brilliant technologist does not make one a great business person. Both of which are required if a startup wants to reach its potential.
TMT Investments Wants To Close This Gap
TMT plans to invest in blockchain startups in what appears to be the traditional VC way. They will offer cash in return for equity before there is any ICO (initial coin offering). The purpose is to offer these companies help in the pre-ICO, so they can really learn what it is to build a viable business in conjunction with their technical dream.
Here’s The Twist. TMT’s Fund Has A Cryptocurrency Component
Of the fund’s $60 million, $45 million will come through traditional investors. Some of this money has already been committed, and TMT plans to raise the other $15 million by selling its own cryptocurrency tokens to outside investors. Those investors can use these tokens to buy and sell on public exchanges.
There has been some recent confusion about whether ICO’s and the sale of cryptocurrencies should be regulated the same way as stock sales, rather than remaining subject to no rules. With this particular planned cryptocurrency, TMT plans for it to be treated like traditional security, making it only sold to officially accredited investors. Unlike the current state of cryptocurrencies, this will allow TMT to know the names of their investors, making it a fully compliant security token.
This Is A Sign That Venture Capital Is Seeing The Value In Cryptocurrency
Like many people, other venture capitalists are seeing the attraction of cryptocurrencies, and fear the potential loss if they miss the boat on this one.
This change in the traditional venture capitalist game is going to have the most confident VC’s learning how to enter and succeed in ICO in order to prove their value to companies. Some will dive right in, while others are getting involved indirectly by the way of ‘hedge fund’ investments in blockchain and cryptocurrency companies.
And then there are those like TMT Investments, launching their new way to invest in startups focused on blockchain technology before they even hold the initial coin offerings. Pitching themselves as ‘the adults in the room’ to the technologically talented who require the business expertise to optimize their dreams.