Just a few months after the platform’s production launch, the first Ethereum startups are already receiving interest, and in some cases, undisclosed investments, from digital currency-focused VC firms.
Interviews with four of the leading blockchain and digital currency industry investors revealed that many are already performing due diligence on startups utilizing the decentralized application platform. Announced in 2014, Ethereum has gained significant traction of late following a successful hard fork and testing from major financial institutions.
Travis Scher, investment associate at Digital Currency Group ( DCG ), for instance, said the New York-based firm has so far evaluated 20 to 30 startups working on Ethereum, while Blockchain Capital managing partner told CoinDesk that the firm has already made two as-yet-undisclosed investments in such startups.
Stephens said that Blockchain Capital, one of the technology’s most active early-stage investors, is "bullish" on Ethereum due to the positive feedback its technology has received from institutions.
The firm has even appointed a junior associate, Jeremy Gardner, to focus on the area for its portfolio, which already includes bitcoin-based startups such as Coinbase and Xapo .
Stephens told CoinDesk: "We love bitcoin, we love the bitcoin blockchain, but we also see a multi-chain future. Some of the enterprise customers are interested in federated and private chains and Ethereum is pretty high on the list." When announced, such an investment would mark an early sign of confidence for Ethereum, which only recently launched with a limited set of features. In the months and years ahead, the platform plans a number of complex updates, including a switch from proof-of-work transaction verification to a proof-of-stake approach.
Other bitcoin and blockchain-focused venture firms including DCG, Boost VC and Pantera Capital indicated they are interested in investing in Ethereum startups, but have not yet provided funding to any entrepreneurs.
DCG said it expects to make its […]
