U.S. venture capital firm raises $10 million in six-hour token sale


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By Gertrude Chavez-DreyfussNEW YORK, April 20 (Reuters) - U.S.-based venture capital
firm Blockchain Capital LLC said on Thursday it raised $10
million in six hours in a sale of its digital tokens to
investors.
    The company did not say when the sale occurred.
    Blockhain Capital's tokens called "BCAP" will be made
available to buyers on the TokenHub.com website on or before May
10, the company said in a statement.
    "We wanted to democratize access and provide enhanced
liquidity to the venture capital asset class, and we believe we
succeeded," said Blockchain Capital co-founder Brock Pierce.
    "We saw incredible institutional demand, which we ended up
carving back to make room for the crypto-community."
    The crypto-community refers to a network of investors,
technology enthusiasts, as well as software developers and
engineers operating in the digital currency space.
    The BCAP tokens represent a fraction of ownership in a new
fund called Blockchain Capital III Digital Liquid Venture Fund,
LP.
    It was the first ever digital token sale by a venture
capital firm. Over the past year, startups in the blockchain
space have raised capital by creating and selling their own
currencies in so-called "initial coin offerings" without the
help of banks or venture capital firms.
    These sales are meant to be quicker than raising capital
through VCs and banks, which can take anywhere from six months
to a year. It is not uncommon to raise funds in under 12 hours.
There are blockchain startups that have generated capital much
quicker than six hours, such as FirstBlood, an online gaming
website which raised $5.5 million in under a minute.
    "Most people don't want to be locked up for five to 10 years
in an investment," said Pierce in an earlier interview. "If
there is liquidity as in a token sale, that dynamic changes
everything."
    Blockchain Capital also announced on Thursday that the fund
will invest in Parity Technologies Ltd, which created the Parity
ethereum software. According to the company website, Parity is
the "fastest and most secure way of interacting with the
ethereum network."
    Ethereum is an open-source blockchain similar to the bitcoin
network.
    Blockchain, a ledger of transactions that first emerged as
the technology underpinning the digital currency bitcoin, has
gained traction on both Wall Street and Main Street. Investors
were encouraged by the technology's ability to record and track
the movement of assets.

 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Tom Brown)
 ((gertrude.chavez@thomsonreuters.com; 646-223-6322; Reuters
Messaging: rm://gertrude.chavez.reuters.com@reuters.net))

Keywords: USA BLOCKCHAIN/FUNDING



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