Cardano developer house IOHK has set up a $20 million "cFund" alongside Los Angeles-based Wave Financial.
- The fund has a broad remit to invest in startups and early-stage businesses that use Cardano and other IOHK tech initiatives – such as enterprise blockchain ATALA.
- Commits will range between $250,000 and $500,000 for either equity or token stakes.
- The cFund is a 50/50 venture: IOHK has already put in the "anchor" $10 million, and Wave plans to raise the other half from external investors.
- Nathan Kaiser, IOHK's general counsel, will become cFund's chief investment officer.
- An IOHK spokesperson said cFund did not overlap with EMURGO – Cardano's commercial arm – which has also supported new ventures.
- California-regulated Wave Financial tokenized a year's supply of Kentucky Bourbon whiskey was worth $20 million earlier this year.
- Both sides had been in talks for many months but the fund's launch was delayed due to the coronavirus outbreak.
- Both Hong Kong-based IOHK and Wave declined to comment on whether the fund had already started selecting projects for investment.
Edit (10:30 UTC): This article previously indicated Wave Financial was based in Canada. It is, in fact, based in Los Angeles and London.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.