Tag Archive : Fund

Andreessen Horowitz sets up a $515M crypto fund

Andreessen Horowitz sets up a $515 million crypto fund to help fund new blockchain projects – with this being the second fundraising campaign by the VC firm. 

According to the recent reports, Silicon Valley venture capital giant Andreessen Horowitz has raised more than $500 million for creating a new crypto fund. The initial fundraising goal was $450 million, but the investment fund ended up nabbing in a total of $515 million. Chris Dixon and Katie Haun who led the investment clarified that the fund will be used to initiate a number of new blockchain projects. 

In an interview with Fortune, Chris stated, “It’s very rare that major, new computing paradigms come along, and we think this is on the scale of cloud and mobile for the Internet,” Chris and Katie explained that the fund will open up new avenues in the field of payments systems, digital stores of value, decentralized finance, Web3, and other ways to monetize content creators.  

Previously Andreessen Horowitz created another crypto investment fund worth $300 million, out of which $25 million went to Coinbase in 2013. Apart from Coinbase, the fund also invested in companies like Dfinity, MakerDAO, Compound, and Filecoin. Interestingly, Andreessen Horowitz was one of the first backers of Bitcoin and blockchain technology. 

The firm is also providing a free, seven-week blockchain education program, under its Crypto Startup School. Andreessen Horowitz partners and other top VCs are involved in the project. Promising projects also get an opportunity to pitch their ideas, and raise money. 

Andreessen Horowitz is clearly being actively involved in the crypto space, investing in projects, and setting up funds that will eventually trigger crypto and blockchain adoption. Last year, it also became a registered investment adviser, a distinction offered by the Securities and Exchange Commission. 

To sum it up, with a $515 million fund right there in place, it will be interesting to note how the capital will be allocated and to whom. Moreover, Marc Andreessen’s recent comment about rebuilding America amid the COVID disaster brings this question more into relevance.

Toronto Stock Exchange Lists the First Public Bitcoin Fund

According to the recent reports, Canadian asset management firm 3iQ has launched a public Bitcoin fund on the Toronto Stock Exchange (TSX). As many as 1.5 million Class A ‘QBTC.U’ shares have been listed on TSX. and as of now, those are trading for $11 each. This is the first public bitcoin fund to be hosted on a major stock exchange like TSX which processes $97 billion in monthly trade. Moreover, this Bitcoin fund will be backed by the Gemini Crypto Exchange as its custodian. 

3iQ confirmed the news through a blog post on its official website yesterday mentioning, “3iQ Corp. is pleased to announce that The Bitcoin Fund (the “Fund”) has completed both its initial public offering of units and its merger with 3iQ Bitcoin Trust, as a result of which the Fund now has 1,491,800 Class A Units outstanding representing at closing total assets of approximately US$14 million. The Class A Units will commence trading today on the Toronto Stock Exchange under the symbol QBTC.U.”

It is being speculated that the public Bitcoin fund will act as a catalyst for mainstream investors to dive into the crypto space without being worried about crypto security or custody. 

3iQ originally proposed the Bitcoin Fund back in 2017. However, it was not until recently that the fund was granted by the Ontario Securities Commission (OSC). 

Apart from 3iQ, TSX also hosts shares of Bitcoin mining company Hut8 and crypto bank Galaxy Digital. Moreover, Horizon’s ETFs are also listed on TSX. 

3iQ’s Stablecoin

3iQ has developed its own stablecoin named QCAD in collaboration with Mavennet. QCAD is an ERC-20 token that is pegged to the Canadian dollar and will be regulated by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) from June.

SBTech must create $30m cyber attack fund for DraftKings deal

As a result of a cyber attack on its partners, SBTech has to set aside a fund of $30m to compensate for any damages in accordance with its DraftKings deal.

Diamond Eagle Acquisition Corp. (DEAC), the acquisition company heading DraftKings’ acquisition of SBTech, detailed the new obligation in an additonal indemnity clause on the deal’s contract.

The cyber attack shut down a number of SBTech’s partner sites last month for approximately six days.

However, the supplier ensured that due to the coronavirus pandemic causing mass sporting cancellations, the impact of the downtime was minimal for partners on the revenue side.

According to the new clause, SBTech owners will need to set aside $30m of the $600m being paid in the deal to be held in escrow for two years.

If compensation costs exceed this $30m amount, the DEAC is able to also use funds from the previously arranged $25m escrow and $45m in shares.

The DraftKings – SBTech deal is expected to close in the first half of 2020.

It is anticipated the combined company will have a market capitalisation of approximately $3.3bn, with over $500m of unrestricted cash on the balance sheet.

Jack Dorsey Starts $1 Billion Fund to Fight the COVID-19 Pandemic

As per the recent reports, Twitter CEO and Square founder, Jack Dorsey has opened a new initiative named Start Small LLC and has funded it with $1 Billion which is approximately 28% of his wealth. Jack confirmed via twitter that the funds raised through this initiative will be used to support the global fight against the COVID-19 pandemic. He clarified that once the crisis is over, the remaining funds will be directed towards girl’s health, education, and universal basic income (UBI) initiatives. 

Explaining his inclination towards UBI and girl’s education, Jack mentioned, “Why UBI and girl’s health and education? I believe they represent the best long-term solutions to the existential problems facing the world. UBI is a great idea needing experimentation. Girl’s health and education is critical to balance”

While assuring that the funding will be completely transparent, Jack added that this initiative is the best long-term solution to the existential problems facing the world.

Talking about Start Small LLC, he clarified that all grants will be made from the foundation directly to the beneficiary organization. Furthermore, all financial transactions in this regard including sales and grants will be available publicly through a tracking sheet. 

Interestingly, Jack has extracted the entire funding amount from Square. He reasoned that he owns a lot more of Square than he does of Twitter. Hence it makes more sense to draw the funds from his Square shares. However, he acknowledged the fact that this initiative will benefit both Square and Twitter in the long run. He stated, “The impact this money will have should benefit both companies over the long-term because it’s helping the people we want to serve.”

Dorsey’s support for Bitcoin is well-known. BTC has been one of the most prominent revenue generators for Square’s CashApp. He recently offered the USE OF Square’s CashApp to distribute the U.S. stimulus package. 

We hope Jack’s initiative to donate and fund the fight against COVID-19 will be an example for others to come up and do their bit. 

Binance Sets Up $50M Blockchain Fund with Indian Startup WazirX

Global cryptocurrency exchange Binance has announced a partnership with Indian cryptocurrency platform WazirX. Under this collaboration, Binance has designated a $50 million fund for the purpose of blockchain development in India. This update is a part of the ‘Blockchain for India’ initiative taken up by both these companies. 

WazirX was acquired by Binance in November 2019. It is a cryptocurrency exchange that allows the buying and selling of various digital currencies like Bitcoin, Ethereum, Ripple, Litecoin, etc. The WazirX platform is powered by its native token named WRX. 

Blockchain for India initiative
The $50 million blockchain fund will be used to empower the development and adoption of blockchain-based offerings in India. The fund will reportedly be backed by native tokens of both the companies –  Binance Coin (BNB), Binance USD (BUSD) and WazirX (WRX).

Talking about the collaboration, Nischal Shetty, WazirX founder, and CEO said, “With this fund, we want to encourage and enable more and more founders and teams to come in and BUIDL. This initiative also shows the incredible potential that the Indian blockchain ecosystem has to offer.”

As a part of the initiative, the funds will also be used to mentor local Indian venture funds and recipients. Moreover, a number of universities and colleges will also receive help from the fund to set up their own blockchain incubators. Interestingly, all projects selected under this initiative will have complete access to Binance’s cloud, decentralized exchange, launchpad, research, academy, portfolio companies, Binance Chain and Binance X.

The Indian Cryptocurrency scenario
The cryptocurrency space in India has not flourished much over the years due to various regulatory constraints and government interventions. However, the financial authorities of the country have welcomed the prospect of crypto off late. Recently, the Supreme Court of India lifted the ban imposed by the RBI on trading cryptocurrencies.

The latest collaboration between Binance and WazirX aimed to enhance blockchain development and crypto opportunities in the country is definitely hints towards a bright future.