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The Competition for a Share in Trillions of Profits Is Fierce among VCs

Jul 1, 2018, 8:00AM
1 min, 18 sec READ

Union Square Venture's Albert Wenger announces firm's investment strategies and the market's potential for trillions of dollars in profit.

Union Square Ventures, a New York-based venture capital firm, is forcefully entering the blockchain environment. The firm will be an aggressive investor in blockchain and cryptocurrency projects, targeting the "foundational plumbing stage" of the technology's development. Managing partner Albert Wenger interviewed with CNBC regarding both firm investment strategies and an optimistic outlook for the blockchain arena.

Investors are rationally pouring a lot of money into this sector, beacuse I think people are seeing the winning blockchain here might be worth a trillion, or a couple of trillion dollars [...] It's not all crazy to think that.

The venture capital firm is not expected to split its funding efforts between blockchain and more traditional options. Wenger spoke to keeping everything "under the same roof" and pursuing the trillions of dollars in profits waiting to be captured in this environment. Union Square is not alone in pursuing an early foothold among venture capital firms in blockchain. Andreesen Horowitz, managing firm for over $4 billion assets annually, committed to a $300 million 16z cryptocurrency fund earlier this week.

According to CoinMarketCap, the total cryptocurrency market amounts to more than $254 billion. Many believe in buying "the dip" as the market cap is a minor 31% of its January high. Venture capital firms offer a valuable position in the changing environment for blockchain companies and the initial coin offering funding-model and more rapid investment is likely to come as the industry's leaders jostle for market position.



Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.