The Rockefeller family's venture-capital arm is moving into cryptocurrencies. Venrock ("Venture" plus "Rockefellers") is partnering with the cryptocurrency investor group, CoinFund, to help entrepreneurs launch blockchain-based businesses.
"We wanted to partner with this team that has been making investments and actually helping to architect a number of different crypto economies and crypto token-based projects," Venrock partner David Pakman told Fortune.
Venrock reportedly has $2.6 billion in assets under management. The Rockefeller dynasty is one of the richest families in the world, with an estimated net worth topping $1 trillion.
Not Interested In Short-Term Profits
Pakman said Venrock is less concerned about short-term profits than in making a long-term investment in blockchain technology and the virtual currency industry.
"There are a lot of crypto traders in the market," Pakman said. "There are a lot of cryptocurrency hedge funds. This is different. To us, it looks a little bit more like venture capital."
CoinFund was founded in 2015 and is based in Brooklyn, New York. The group has invested in a number of blockchain projects, including Kik, the instant messenger app maker.
Another CoinFund client is CoinList, a technology platform that helps companies launch regulation-compliant ICOs.
Rockefeller Center, a New York City landmark, was commissioned by the Rockefeller family. (Photo: Pixabay)
The Securities and Exchange Commission has recently cracked down on fraudulent ICOs. Despite the SEC's harsh take-downs of these allegedly bogus ICOs, SEC Chair Jay Clayton insisted the agency does not think all ICOs are frauds.
Clayton said ridding the nascent crypto ecosystem of con artists will benefit the industry by getting rid of the scammers who give the space a bad name.