In the Startup Tech Capital of the World, it seems only fitting that a new cryptocurrency would spark immediate excitement for potential investors. Silicon Valley leads the world in tech projects and blockchain projects yet, until now, VC (Venture Capital) funding has overwhelmingly gone through traditional funding channels.
There has always been resistance to cryptocurrency in the tech world of Silicon Valley, which some believe can be attributed to the culture, Blockchain tries its hardest to diversify and open up the market to everyone.
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Jeremy Rubin, A Bitcoin core contributor states that the culture of Silicon Valley is 'at odds' with the philosophy of open-source, as in the Valley they don't respect the wider ecosystem.
But the times, they are a changing and perceptions as well as currencies are opening up their minds and pocketbooks to new ways of doing business.
With all the controversy between the SEC and the digital currency world, it seems an unlikely moment to promote a flashy highbrow crowd-sale of the century, but Andra Capital are plowing ahead anyway, with the Silicon Valley Coin. In fact, Andra Capital, a U.S. tech fund, has already raised $500 million, from unnamed investors, for a cryptocurrency that investors can use to back late-stage VC companies.
The Silicon Valley Coin (SVC), maintained on the Ethereum blockchain, invests in US tech companies that are worth, at a minimum, $500 million. With a public crowd sale available in the Summer, the accredited investors are currently somewhat limited, unlike the majority of ICOs which are available to all types of investors and highly deregulated. Those who wish to buy into this bitcoin must be worth more than $1mil (if from the US) and foreign investors can purchase the token, depending on their own countries regulations.
Managing partner Dr. Hermann Liu said “By being on the blockchain, Andra provides global investors access to the best technology companies in Silicon Valley — opportunities that are traditionally limited."
By adding themselves to the blockchain, another Andras Managing partner, Haydar Haba feels that investors will gain hugely, as illiquid assets can become tokenized and therefore highly tradeable.
The Silicon Valley coin unlike traditional Venture capital projects won't have to wait 10 years to go liquid. SVC is a token financed by legally registered securities in late-stage tech companies and this might be why everyone is so interested.
Rather than trying to dodge the SEC regulations, the investment here is propped up by already standing regulations and the sturdiness of the SLV will come from the assets standing behind the token
This may seem a little too conformist to some bitcoin investors, but Andra whose portfolio is stuffed with late stage firms with two rounds of seed funding, claim they are actually leveling the playing field in Venture Capital.
Disruption always gets everyone very excited, and thankfully, there does seem to be a shift in the polarized worlds of Bitcoin and Tech on the horizon, which could also work in favor of Blockchain becoming more robust to Hacker attacks.
Open source doesn’t have to mean, free for all and by drawing in the tech giants may impose a little more control over the Block chain, currently struggling against a tide of political forces that don’t see Digital currencies as safe.