Most ICOs Will Not Result in Viable Product, Investor Estimates
Mangrove Capital Partners plans to invest tens of millions of dollars in Israeli blockchain companies, according to partner Roy Saar
Meir Orbach | 16:44 28.02.2018
European venture capital firm Mangrove Capital Partners was the first to invest in video-chat company Skype, sold to eBay in 2005 for $2.6 billion, and the first institutional investor in Israeli website building company Wix.com Ltd. Now, Mangrove has set its eyes on Blockchain. According to Mangrove partner, Israeli-born Roy Saar, the VC is planning to invest tens of millions of dollars in Israeli blockchain companies.
For daily updates, subscribe to our newsletter by clicking here.Mr. Saar spoke to Calcalist earlier this month. Q: What are you looking for in Blockchain technologies? A: I’m looking for infrastructure. We believe in this technology, but not in the bubble that has formed around it. The technology has been around for a decade, but up until 2017 there were few companies who built infrastructure for coins. Now, we are seeing infrastructure in areas beyond coins, in smart contracts, payments, shipping, and more.
Where are you going to be investing?We enter at an early stage, so we will invest in pre-seed, seed, and early-stage companies before ICO, while they are building their product and marketing systems. We are involved today in companies that first raise equity, build products and go into an ICO when the ecosystem is ready for it. How can a venture capital fund make money in blockchain? The first way is through coins distributed by the company at the time of ICO, which we could then realize. At the moment, there are many restrictions on the liquidation of cryptocurrency in Israel, but I believe we will see a regulatory change before the end of the year.