Bitcoin, Cryptocurrency And Blockchain News

US Technology Firm Raises $500 Million for New “Silicon Valley Coin”


There is a new coin set to join the other 1000 cryptocurrencies currently in existence. However, unlike most cryptocurrencies that are developed by cryptocurrency enthusiasts and only funded by crowdfunding from retail investors around the globe, this new crypto token will be developed and backed by a technology fund in the US, with a focus on attracting institutional investors.

According to Haydar Haba, the Managing Partner at Andra Capital, the US-based technology fund is developing an Ethereum based token that will allow investors outside the silicon valley community to “back a group of late-stage venture capital (VC) firms” and assets.

Changing the Dynamics of Funding in Silicon Valley

Reuters reported that the tech fund has raised $500 million in funding to back the new cryptocurrency that will represent investments made to “US technology companies” worth over $500 million. Haba further stated that Andra Capital is looking to change the dynamics in the venture capital industry by giving investors outside the Silicon Valley community more “access to high-growth Silicon Valley Assets” and investment opportunities.

Silicon Valley boasts of the most reliable and well-known VC firms, as well as a host of top-tier technology firms. However, the opportunity to invest will be capped at a minimum of $1 million for each individual investor and will only be open to accredited investors in the US.

Although Haba did not mention the specific names of investors who are already on board, he indicated that non-US individual investors will be able to buy the tokens globally in line with their local rules and regulations around cryptocurrencies.

Silicon Valley Coin Set to Raise 1 Billion

Despite the fact that Andra Capital aims to eventually sell Silicon Valley Coins  (priced at a $1) to investors globally, the company’s document explained that a huge chunk of Andra’s portfolio for this new project is set to be allocated for late-stage firms – up to 80 percent.

The late-stage firms will need to have a minimum of two rounds of funding from renowned and “established venture capital companies”.

So far, a total of 1 billion tokens have been created; the company hopes to raise a $1 billion, after which investors will be able to appreciate returns within “30 to 60 months”.

What are your thoughts on Andra Capital’s move to develop the Silicon Valley Coi? Share your thoughts and opinions with us in the comments section.