Blockchain investing has emerged into the main stream making home run investment opportunities harder and harder to come by. We review some fund managers and founders that have begun to successfully apply the technology into various industries. We look to uncover the venture capitalists and angel investors that go deep in the technology and those that analysts that forecast the market. Our hope is to help uncover the offerings that mitigate the risk in adding to a portfolio.
Our view of Blockchain Technology
Blockchain solutions apply software built upon existing connected technology. A decentralized platform for value allocation & accountability though a constantly growing ledger of accounting records organized in “blocks” of encrypted validation. The critical piece is that this ledger is decentralized, neither stored in a centralized location nor managed by a third party. The blockchain formation results in new transactions being added irreversibly and old transactions preserved forever; the open-source nature attests to the resilience and transparency of the technology.
Block Geeks considers applications built on the framework Dapps:
- Open source applications allowing all changes to be governed by autonomy with a code based open for scrutiny by all and all changes decided by consensus.
- Decentralized all records of the applicants operations stored publicly.
- Incentivized validators of the blockchain are rewarded.
- Protocol the application community must agree on a cryptographic algorithm to show proof of value.
Blockchain is evolving as a new way to form businesses and organizations where participants are able to claim rewards based upon the power of the network created.
Our Views on Cryptocurrency
Cryptocurrency is a digital currency backed by a secured network; the cryptographic currency can be bought, sold, and traded similar to shares in a company in exchange for ownership, other cryptocurrencies, fiat currencies or goods and services.
A crypto-currency token represents a programmable currency unit secured to a blockchain via the smart contract; smart contracts are programs that execute precisely as they are designed enforcing a relationship between members within a cryptographic code. A part of a “smart contract” lucidity protocol which tracks, verifies, and reaches consensus within a member composed data ecosystem in the context of a specific software request. Or in other words the blockchain is a digital storage of consensus truth. Smart contracts don’t simply layout the ground rules and penalties around an agreement but they also automatically enforce them.
Let’s consider the existing trading infrastructure and high demand. Blockchain technology innovation is rapidly proliferating across all industries and fund manager classes. The technology is playing an impressive role in both front office and investment functions such as in the securing of crypto assets.
It’s advisable that anyone do their own research and get a better understanding of how tokens are regulated, how smart contracts can protect digital assets, and how to add these funds or assets to create a successful portfolio. We look forward to connecting with others to help in this effort.
Top Blockchain Fund Managers
To understand performance we must pull market data. At Fund Wisdom we look to provide a list of analytics offerings to perform this analysis. We have also been pulling cryptocurrency pricing data from the Coinbase API, but there are others like GDAX, Kraken, BitStamp, and Gemini. HFR Blockchain and HFR Cryptocurrency indexes were launched at a public audience in 2017. Both indexes track managers invested in Bitcoin, Ethereum, and other cryptocurrencies.
Below are the venture firms and angels focused on blockchain and cryptocurrency. This list was built by Bob Lee via a Medium Post. We will look to shortly add a detailed analysis of these funds.
- FBG Capital – Private Investment Company based out of China. The company operates in the asset management industry. FBG Capital is a digital asset management firm in blockchain based capital markets. @FBGCapital.
- Fenbushi Capital – Founded in 2015 Fenbushi Capital is the first China-based venture capital firm that exclusively invests in Blockchain enabled companies. The company’s mission is to accelerate the inevitable future of the Blockchain economy by supporting as many companies as possible. Though not a full time partner, Ethereum co-founder, Vitalik Buterin retains a role as an advisor in the company.
- HyperChain Capital – One of the first in the world, HyperChain is a digital asset management company based in Singapore. The company invests in blockcahin-based projects and decentralized projects. HyperChain’s philosophy is to do good, as an early participant and consultant to blockchain protocol projects and organizations that support innovative technologies.
- Blockchain Capital – founded in 2013 Blockchain Capital based in San Francisco helps entrepreneurs build world class companies and projects based on blockchain technology. Blockchain Csapital claims to be one of the oldest and most active venture investors in the blockchain technology sector; financing 72 companies to date.
- InBlockChain – One of China’s largest and most influential investment groups active in the Chinese blockchain space. Early investors in significant blockchain applications InBlockChain is among the largest global holders of Bitcoin.
- #HASHED based in South Korea #HASED this leading crypto fund is accelerating the global enablement of blockchain through community building and impact investing.
- Bitmain – A privately-owned company headquartered in Beijing, China providing the world’s best ROI for any bitcoin miner. The company also operates Antpool (one of the largest bitcoin mining pools).
- Pantera Capital – An investment firm focused exclusively on ventures, tokens, and projects related to blockchain tech, cryptocurrency, and crypto assets.
- Coinsilium Group – Provides seed capital to developers for blockchain technology and fintech businesses. As stated on their website Coinsilium Group is a venture builder, investor and advisor, supporting early-stage blockchain technology companies and the digital token economy; they were the first global blockchain accelerator to IPO in 2015.
- Sequoia Capital – A high profile firm based in California mainly focusing on the tech industry. This top tier venture firm has made some inroads within the blockchain R&D space.
The next generation of hedge fund platform design is quickly moving towards harnessing the power of Blockchain technology, provide cutting-edge apps, while at the same time enabling ad hoc audits and real-time compliance enforcement and feedback protocols.
Who do you think should be on this list? Let us know your thoughts in the comments below or feel free to Contact us >