An investor syndicate with emphasis on bitcoin and financial technologies is set to be launched by incubator 500 Startups based in California, the firm said.
Speaking to the Silicon Valley Business Journal, founder partner of 500 Startups Dave McClure, said the latest venture is the firm’s third syndicate for investors.
A section of what he said as appearing on thebitcoinnews reads, “We are just getting ready to roll out our third syndicate, which will be focused around financial services and bitcoin.”
The idea of investor syndicate is highly embraced on AngeList, a popular platform for accredited investors to converge capital with the purpose of nurturing promising business concepts.
The incubator already has one such syndicate that aids general startups and another emphasizing on female founders. 500 Startups injects $1 million to each of the syndicates.
The company is launching the latest syndicate to attract additional funding channels for promising bitcoin and financial technology concepts under the incubator’s umbrella.
“I think a lot of [investors] are taking a-wait-and-see approach, the other challenge is that there’s been no liquidity, there’s been no exits,” partner Sean Percival is quoted by Coindesk as saying.
The startups accelerator recently said it has pumped funds into five bitcoin startups, with each firm parting with 7% stake in exchange for $100,000. According to Percival, the capital injections put each of the companies at a value of about $1.4 million.
The incubator assembled bitcoin and FinTech in one syndicate to compensate for reluctance by prospective investors to put their money in bitcoin startups.
The two founders of 550 Startups have experience in bitcoin and financial technology. Percival is a former VP at MySpace, a social networking platform. He has marketed Blockchain, a firm involved in bitcoin hosting wallets.
McClure worked for PayPal in the early 2000s as the director of marketing.
To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Deepak Tiwari at firstname.lastname@example.org