In one of the most successful seed funding efforts, BTC derivatives startup Hedgy has raised $1.2m from a group of 10 investors. Major investors included Draper Fisher Jurvetson partner Tim Draper, Salesforce CEO Marc Benioff and Sand Hill Ventures. The occasion also saw the company launching a new derivatives product aimed at commercial Bitcoin miners.
Talking about the product Hedgy CEO Matt Slater said that product helps miners address the issue of price volatility as they look to sell coins on the market. According to him the startup has been working with MBP founder Dave Carlson for months on the derivative. Carlson serves as an advisor to Hedgy and playing vital role in shaping up the company.
He explained that the new derivative solution can help other industrial mining companies better manage their financial risks. According to him the company’s core focus right now is solving the problem for miners. With Dave Carlson on the board he expects this is not going to be unsolved for long as he is one of those most well respected and biggest miners in the space.
He quipped that if the company can solve it for Dave it can solve for other miners as well. Adding further he said that the company has fielded interest from other Bitcoin miners, as well as companies in the broader digital currency space, about the use of smart contracts to alleviate concerns about price fluctuations.
Tim Draper Appreciates Hedgy for its Team and Mission
Nonetheless, Hedgy also announces that miners that use the derivative can effectively lock in a future price at which they can sell Bitcoins; they need to use a smart contract to settle the transaction on the Bitcoin Blockchain. Even Tim Draper praised the Hedgy the team and predicted a significant role for Blockchain-powered smart contracts to come.
Tim Draper says Hedgy is awesome, has great team, exciting mission. According to him smart contracts are going to be fundamental to contracts of any kind in the future, and Bitcoin makes it all possible. The idea for Hedgy started in the fall of 2013, when the price of Bitcoin was hitting record highs.
As soon as it started fund raising it received a lot of attention; the latest funding includes a previously disclosed $764,000. The company says that if Bitcoin was to revolutionize the financial world, then there desperately needed to be basic financial instruments.
To contact the reporter of this story: Deepak Tiwari at email@example.com