Venture capital investment in crypto is massive. Yet it works behind the curtains given that few of us get to know the faces or even the names behind these multimillion VCs.
But what happens when a VC captures the interest of PayPal and Visa. Enter the $300 million crypto-asset fund known as Blockchain Capital V.
It is not the first time PayPal and Visa have invested in digital asset startups. Blockchain Capital has changed the game by having them work together as limited partners.
With this arrangement Blockchain Capital is allowed to make larger equity arrangements on behalf of Visa and PayPal. It’s a task that's easy to explain but hard to deal with.
For PayPal, this is a first in terms of working with a VC. And companies are neophytes to the crypto VCs world.
The Reason Behind The Investment
Why did both companies elect to participate in Blockchain Capital's strategic partnership program? Well, there are two main reasons: One, it will benefit new startups in the crypto and blockchain sector. And secondly, it represents an opportunity for them to discover more about the cryptocurrency space.
The truth is that PayPal and Visa revealed something quite shocking... for some. Both are trying to make bold investments but need some support to do so. They are not crypto experts, hence they are joining Blockchain Capital now to have a say on the space.
We know PayPal has gone crypto for quite some time. Yet, they still want to continue their job of making digital currencies more accessible. It is a new step on the ladder for them as they try to engage with the younger entrepreneurs who usually run from them.
On the other hand, for Visa, this investment is focused on improving new forms of monetary movement. They are making active efforts to shape and support the role of digital currencies in the future.
A Blockchain Capital Game Changer?
While we understand the reasons why Paypal and Visa decided to join this fund, questions remain as to the focus of the fund itself? For Blockchain Capital the focus is on building a crypto infrastructure that can support decentralized finance (DeFi) and non-fungible tokens (NFTs) projects.
Let's be honest... This investment could be a milestone for PayPal, Visa and the world of crypto. The big guns coming into crypto is what many people have been anticipating. We now have two huge companies trusting and betting in a field that many people still distrust. They are not only investing money but also time and working staff to achieve their goals.
This investment is part of Blockchain Capital's fifth fund. While their other funds in the past were successful, now with PayPal and Visa backing them, we can only expect bigger things. Time will tell, but it seems like things will go just fine for everyone involved.
