The signs of an impending crypto winter surround us, and have given rise to speculation and concern about the blockchain itself and the many apps in development that are built on various blockchains. Investment funds that focused on cryptocurrencies are seeing net asset values plummet by sometimes more than 70%.
Bitcoin itself, the grand daddy of crypto coins, has had a brutal year. On the 17th of December, 2017, it set a high just under $20,000 USD. In the 12 months since that benchmark, it is down 83%. Other tokens such as EOS, Etherium, Cardano, and Dash are down over 90%.
This article is not about the widely reported downward spiral of the crypto market. News headlines around the world are screaming “crypto is dead” at every turn and doesn't need any more words added to the already overwhelming flow lamenting the fall of crypto. If the blockchain itself was only made up of crypto investors, the crypto winter would make investments melt quicker than a snowman in the tropics and a vast puddle of water would be the end of it.
But blockchain is so much more than just investment houses and trading platforms. The blockchain has become the foundation of many fledgling tech development startups. Many of the apps that are being built on the blockchain show great promise for moving our world forward into what could be a second technology revolution.
Many of these startups rely on ICOs and investment funds to get their companies off the ground and get their apps and software into the hands of industry and the public. With the crash rate of ICO’s heading for the stratosphere instead of the moon, and investment capital drying up as the price of cryptos heads ever lower, these software advancements may never see the light of day, much less broad circulation in their marketplaces.
One investment house is seeking to find a way to help struggling devs and startups by investing in those startups to help them survive the crypto winter. The Yeoman’s Growth Capital (YGC) fund is seeking to raise $200 million to invest in fledgling projects that have built functioning software but need help getting it into users’ hands.
While some might think this is the worst of times to seek new investment in the cryptosphere, David Johnston, head of YGC feels differently.
“We honestly think this is the perfect time to launch a growth capital firm that can take all of these great technologies built in the past few years and help bring them into enterprise and to mass adoption by consumers.”
Henry Liu, one of the managing partners of the fund, and formerly head of growth strategy at Facebook, adds,
“It’s a good time to launch this because we are focused on growth and adoption and in these bear market conditions people see the very pressing need for traction – something we have been preaching for the past couple of years.”
While the original funding goal was cut back due to the contraction of the cryptocurrency market, the $200 million cap will be re-evaluated next year and could attract institutional investors, especially if the crypto winter gives way to a warmer crypto spring.
Johnston believes that the blockchain is at an important point in its growth and adoption cycle, and that it requires a different size of capital to realize that growth. By filling the gap between venture capital and private equity, he feels that YGC can help grow companies that already have live projects but need help with growth and adoption.
The YGC Capital website states “We believe that now is the time for the mass adoption of blockchain and the distribution of its benefits to the world. “ David Johnston seems to be determined to help push the blockchain over the tipping point by helping grow startup projects with long term help to survive and even thrive during the crypto winter.