Jersey-based TMT Investments plans to launch a fund to invest in blockchain focussed start-ups. They hope to bring some investment prowess to the ICO space, and also hope to invest in start-ups before their public token sales.
The fund hopes to raise a total of $60 million, of which $45 million will come from traditional investors and $15 from the public via a coin sale. The fund will be run as a joint venture with other industry participants.
ICOs Lacking Business Acumen
TMT partners Igor Shoifot and Julian Zegelman spoke to Business Insider about their motivation for launching the fund. They share a growing belief that many Blockchain start-ups are led by genuinely talented individuals with a lot of technical skill but little business experience.
TMT Investments is listed on the AIM market on the LSE and has $70 million in assets under management. The firm was founded in 2010 and has so far invested in over 20 start-ups including PandaDrive, Gild, Wanelo and Backblaze.
The ICO market currently appears to be undergoing a downturn with fewer coin sales reaching their funding targets, partly due to growing confidence issues in the tokenized sale crowd-fund model.
Going forward, ICOs may find themselves relying more on intermediaries like the TMT Investments blockchain fund. As the market matures, some are speculating that investors may be turning to professional investment services.