Union Sq. Ventures, a New York-based enterprise capital agency that manages $1 billion in property, is planning on it wealthy by investing within the blockchain and cryptocurrency business — which it views as doubtlessly being price a trillion sooner or later.
‘It’s under no circumstances loopy’
Union Sq. Ventures, named after its location in New York Metropolis, has already invested in common San Francisco-based cryptocurrency alternate Coinbase. Nevertheless, it at present has no plans to launch a separate fund.
Albert Wenger, a managing associate at Union Sq. Ventures, informed CNBC that his agency is investing within the business’s “foundational plumbing.” Nevertheless, he additionally believes it’s not “loopy” to assume that, by investing in the fitting undertaking, buyers can strike it wealthy. He defined:
Traders are rationally pouring some huge cash into this sector, as a result of I feel persons are seeing the profitable blockchain right here may be price a trillion, or a few trillion . It’s under no circumstances loopy to assume that.
He additionally famous:
Actually, for anyone explicit undertaking there’s a particularly excessive probability it received’t work. In consequence, if it really works, the rewards can be very excessive.
Wenger’s agency stands in direct competitors to Andreessen Horowitz’s Silicon Valley Enterprise Capital (VC) agency, which lately introduced the launch of a $300 million cryptocurrency fund. Dubbed “a16z crypto,” the fund will concentrate on non-speculative use instances of blockchain know-how.
Diversification is Key
In the case of investing within the blockchain and cryptocurrency area, Wenger doesn’t imagine Bitcoin maximalism is the way in which to go. Reasonably than placing all of 1’s eggs in a single basket, he means that cautious diversification might yield the most effective outcomes. He defined: