Follow Naijacrux on twitter .follow us on Twitter www.twitter.com/naijacruxonline, or @naijacruxonline or search for naijacruxonline on twitter!!Like us on facebook .Like us at www.facebook.com/Naijacruxforum.Click Here To Last longer In Bed[Stay amused>>>Don’t be a one minute Foul]>>> Love need Tips-See how Here


Author Topic: Europe's biggest venture capital firms are buying into sales of new virtual coin  (Read 8332 times)

0 Members and 1 Guest are viewing this topic.

Offline naij

  • Hero Member
  • *****
  • Posts: 822
  • Karma: +0/-0
Loading...

Some of Europe's biggest venture capital firms are buying into sales of new virtual coins or asking their investors to give them the freedom to do so, in a sign of mainstream investor backing for the booming but controversial crowd-funding tool.

Germany's HV Holtzbrinck Ventures, which has more than 1 billion euros ($1.23 billion) under management, is talking to its investors about changing the terms of its next fund so it can buy tokens directly, Jan Miczaika, a partner at the firm, told Reuters.

Lakestar, the Zurich-based firm run by Klaus Hommels, has made at least four investments in crypto and blockchain-related businesses since early 2017, among them ShapeShift, an exchange, and Blockchain, a wallet provider, and it is preparing to invest in a combination of coin and equity stakes in more.

Smaller and newer funds like BlueYard Capital and Fabric Ventures are focusing specifically on investments around blockchain — a distributed ledger technology that can remove the need for centralizing institutions — often by buying virtual coins.

Venture capitalists usually take equity stakes in start-ups, gaining a say in how the company is run and legal and governance certainties over their investments. Buying into initial coin offerings (ICOs), as the sale of digital tokens is known, can be far more risky. They offer little more than a promise the tokens will be worth more in future.

But with hundreds of start-ups — ICOs last year raised $6.3 billion — seeking to raise capital for new projects, investors say that to gain access to cutting-edge technology they need the flexibility to compete.

"It's the internet in the early 1990s, you have to experiment," said Nicolas Brand, a partner at Lakestar. "I have to find the best way of backing the best entrepreneurs and we need to be agile in how we invest."

Regulators have raised serious questions about the transparency of ICOs and the risks of scams, although authorities in countries from Switzerland to France have disclosed plans to attract new launches.

Supporters say blockchain will disrupt industries from finance to logistics and that ICOs are a novel way of crowd-funding.

Tokens are the route to make money. They embody the idea that consumers will need to own and use them to buy services, from playing computer games to online shopping. When demand for those products spreads, the token prices will rise, creating value for earlier owners like venture capitalists.

"The [blockchain] technology is very exciting. Ninety-five percent of the tokens will go to zero. On the other hand, the other 5 percent are very interesting and could go on to revolutioniZe the market," said Miczaika at HV Holtzbrinck.



 

?400 Billion worth of looted Nigerian money stashed in Europe, Asia and America

Started by admin

Replies: 0
Views: 1137
Last post August 09, 2015, 12:21:07 PM
by admin
Europe Strikes Half-Trillion Euro Deal to Help Cope with COVID-19

Started by gurusforum

Replies: 0
Views: 6242
Last post April 10, 2020, 11:42:55 AM
by gurusforum
Europe Economy to shrink more Than Previously Thought

Started by naij

Replies: 0
Views: 15298
Last post July 08, 2020, 11:53:24 AM
by naij
Walmart to add 115 new stores in China in face of sales decline

Started by mastercode

Replies: 0
Views: 747
Last post May 21, 2015, 01:13:10 AM
by mastercode
Guaranteed Secrets to Closing More Sales in business

Started by legendguru

Replies: 0
Views: 530
Last post November 05, 2015, 11:45:10 AM
by legendguru
Nigeria to spend a whopping N1.8 trillion on capital spending this year - FG

Started by legendguru

Replies: 0
Views: 831
Last post August 26, 2016, 08:02:41 AM
by legendguru
Making at least N200,000 daily with buying and selling of Bitcoin

Started by nairaclass.com

Replies: 0
Views: 927
Last post September 11, 2017, 09:08:31 AM
by nairaclass.com
Amazon to buy Souq.com 'Middle East's biggest online retailer.

Started by Naijaloaded

Replies: 0
Views: 773
Last post March 29, 2017, 01:25:43 AM
by Naijaloaded