Several Canadian VC firms and technologists have banded together to launch Toronto-based Ethereum Capital, a company dedicated to investing in Ethereum.
The company is launching a private placement co-led by CIBC Capital Markets and Canaccord, with plans to raise $50 million. According to The Globe and Mail, Ethereum Capital will then amalgmate with shell company Movit.
The firm’s strategy is twofold: acquire Ether and make strategic acquisitions of controlling stakes in Ethereum-based businesses. The idea is that Ethereum will become the “backbone” for enterprise applications developed using blockchain technology.
“I am extremely excited to announce the launch of Ethereum Capital with support from our partners including Purpose Investments, Citizen Hex, L4, and OMERS,” said Som Seif, executive chairman and co-CIO of Ethereum Capital. “We are pleased to offer investors a Company that will provide exposure to the growing blockchain sector backed by the expertise of an industry-leading team of advisors.”
Ethereum’s network validates smart contracts and executes according to the rules in each contract, facilitating automation of complex and customizable transactions. Ether is the currency used to pay for the computing resources needed to run applications or programs on the Ethereum platform.
The company’s board includes:
- Ben Roberts, co-founder and CEO of Citizen Hex
- John Ruffolo, executive managing director of OMERS Platform Investments
- Joey Krug, co-founder of Augur and co-chief investment officer of Pantera Capital
- Boris Wertz, founding partner of Version One
- Liam Horne, co-founder of Counterfactual and L4 Ventures;
- Colleen McMorrow, director at Exco Technologies and former audit partner at Ernst & Young
- Cam di Prata, founder and managing partner of Gibraltar & Co.
- Michael H. Conn, founder and managing partner of Quail Creek Partners
- Som Seif, founder and CEO of Purpose Investments
“OMERS has been active in the blockchain and crypto sector for several years now,” said Ruffolo. “OMERS believes in the potential of blockchain technologies and I am thrilled to join a strong network of advisors as Ethereum Capital creates value in the sector.”
The offering is expected to close on February 16.
Photo via Ethereum Price