Ethereum Is A Big Part of Future VC Funding in Blockchain Startups

It seems to be only a matter of time until a VC mind shift is taking place in the world of digital currency. Whereas most of these individuals and firms have been looking at bitcoin startups in the past, they moved to blockchain companies about a year ago. But that trend seems to be changing yet again, as there is a larger focus on Ethereum startups right now.

Also read: Dutch Central Bank Examines Blockchains and May Launch Own Digital Currency

VC Funding in Bitcoin, Blockchain, and Ethereum

TheMerkle_VC Funding Bitcoin Blockchain Ethereum

All three of these particular segments hold a lot of promise for the future, which has not gone by unnoticed by VCs. Not that anyone is losing confidence in Bitcoin itself, mind you, but the blockchain has far broader use cases than just the financial side of things. Ethereum is showing how blockchain technology can be used to create autonomous corporations, and smart contracts are an integral part of the future for both digital currencies on their respective blockchains.

With all of the VC funding flowing into Bitcoin and blockchain startups during 2015, exciting projects will start to come to fruition later this year. Or that seems to be the general hope at last, as VCs are not the most patient bunch when it comes to projects still under development. Even though it takes time to do things right, the return on investment timespan has to be kept as short as possible.

It should come as no surprise to find out a lot of VCs are keeping a close eye on Ethereum, as this project has been focusing on using the blockchain for non-financial purposes.  Evolution in the world of blockchain means VCs have to diversify their portfolios and adapt their strategies. Moreover, there is a growing list of proof-of-concepts being actively developed regardless of funding.

Projects such as Augur, for example, have brought a lot of positive attention to the Ethereum ecosystem. This is one of the so-called “unicorns” in the blockchain industry which has the potential to shake things up by quite a margin. Whether or not they can live up to that expectation, remains to be seen, but so far, the team is doing an excellent job.

Boost VC, along with Blockchain Capital, are both taking a closer look at Ethereum companies. As a result, the respective Bitcoin and blockchain accelerators will open up to companies using Ethereum as their foundation, which could bring some interesting competition to the developer ecosystem. Different types of technology competing with each other will only drive future innovation across the board, which is of great benefit to everyone passionate about digital currency.

Source: Nasdaq

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