Ethereum Foundation: The Best Crypto VC

May 4, 2020 8:03 PM UTC

Amidst the current global recession, most companies are facing financial problems. Startups across the world are facing troubling times as the once free-flowing taps of VC funds have suddenly run dry. Yet a small segment of startups may remain unfazed. 

To date, about 150 startups working to improve the Ethereum blockchain have raised more than $24 million, and given that ETH has a better year-to-date performance than virtually any traditional equity market, the tap is unlikely to close for Ethereum startups. 

According to a recent report, the Ethereum Foundation, a non-profit firm based in Switzerland, is the most active donor for Etherum startups. The foundation has funded more than $21 million to several projects. However, given that the Foundation holds a considerable amount of ETH, funding startups that enhance the Ethereum ecosystem directly boosts the value of its assets. 

The grants given to projects that improve the Ethereum ecosystem ensure the Foundation is able to increase the value of its ETH holding, making it similar to a VC, but one that aims to bolster the value of its ETH rather than a dollar-denominated balance sheet. 

The Foundation Leads in Term of Grants

The Ethereum Foundation has funded almost 94 grants to date. 

Parity, Starkware, and Status are some notable recipients, and like the rest of the grant recipients, they have made or intend to make significant advancements in the Ethereum ecosystem. 

By focusing on its goals to promote Ethereum base layer research and the advancement of its usage, the Ethereum Foundation plays a pivotal role in the success of both Ethereum and ETH. As the Foundation improves the blockchain, the need for ETH increases, and so does its value. Ethereum Foundation had a strict focus on funding developments that advance its layer, standing at a stark difference at competitors like NEO, whose NEO Global Capital VC arm funds any project, acting more like a for-profit fund rather than a non-profit ecosystem expanding organization. 

Moreover, many competing blockchains’ foundations have also failed to replicate the visionary role the Ethereum Foundation has played in the success of Ethereum. While Ethereum Foundation has distributed funds to ensure a decentralized advancement of Ethereum, most other blockchain foundations have acted as centralized companies that own and individually grow the associated blockchain.

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