Bloccelerate VC has just raised $ 12 million for its first fund that will support startups selling blockchain technology to corporate clients.
The 3-year-old Seattle-based company plans to invest in 10 to 15 start-ups, with an average investment ranging from $ 500,000 to $ 2 million. He has already made five investments in startups, including Blockapps, Symbiont and MakerDAO.
Kate Mitselmakher, former head of Gartner Invest, launched Bloccelerate in 2018. She said the pandemic has created a positive wind for blockchain applications as businesses accelerate the adoption of digital services.
“With this, we have seen specific use cases around multi-party record keeping, supply chain and financial markets come to the fore,” she said.
Bitcoin has hit record highs in recent months, helped in part by giants like PayPal that have embraced digital currencies as payment options.
Sam Yilmaz, COO and general partner at Bloccelrate, said cryptocurrency is an initial use case for the broader blockchain industry. He likened it to how email was the Internet’s first use case and led to e-commerce, remote data storage, and other applications.
“As public knowledge of cryptocurrencies increases, more people are considering other use cases for the technology and implementing ways to upgrade workflows,” he said. he declares. “There are many use cases.”
Yilmaz, who previously headed the Decentralized Applications Fund, said blockchain can be used to update information on the location and quality of physical assets; to track ownership and rights to alternative assets and obligations; or to keep immutable records of mortgage files, for example.
BlockApps, a Bloccelerate portfolio company, helps track products for Bayer Crop Sciences, for example, while Symbiont manages passive index data for Vanguard.
There are also a growing number of healthcare initiatives looking to use blockchain to create new efficiencies in healthcare, while preserving patient privacy and safety. Seattle-based health technology company Lumedic last month launched a new effort to create digital identity standards in the healthcare industry, aimed at streamlining the exchange of patient data and removing Bottlenecks in the wider healthcare system using blockchain technology.
“Some companies are even considering leveraging blockchain for time stamping marriage certificates, verifying intellectual property rights, confirming workforce qualifications,” Yilmaz added. “Someday maybe court hearings and corporate authorities will be on the blockchain so that multiple stakeholders who don’t know or trust each other can trust the immutable records of what happened. past in the past. “
Mitselmakher said Bloccelerate did not have a geographic focus for investments, but was happy to support businesses in his hometown. She cited the Seattle area’s history with blockchain technology, which includes current companies including Bittrex and a host of small startups.
“We believe this region has an abundance of talent and an undersaturation of capital,” Mitselmakher said.
Bloccelerate raised capital from 45 limited partners for its first fund, which included a mix of family offices, high net worth individuals and a corporate investor.