Tim Draper-Backed Blockchain Company Tezos Diverts $50 Mln into VC Fund

Tezos, the Tim Draper-backed Blockchain technology company, has announced that it will be using $50 mln of the funds raised during its ICO to start a new VC fund dedicated to financing companies building on its ledger platform. According to the announcement:

“The innovation and growth of the ecosystem is the top priority of the Tezos Foundation.”

Ethereum fears allayed?

There had been great concern over what Tezos would do with the record-setting funds raised by its ICO, with many suggesting that they would dump the ETH onto the market, causing price collapses. 

Drokzid, the alt coin buyer on Twitter said:

Warning to all $ETH buyers: This is not the bottom imho. The party will start when Tezos will dump all their $ETH for fiat in two days.

The fears were sparked by concerns over what Tezos would do with the substantial amount of cash they had earned. Converting to fiat currency or overspending were both risks. 

However, with the announcement, the company also indicated a forward thinking financial plan: 

“We do not know what challenges lie in the future and therefore we are prudently managing the Foundation’s portfolio to last for decades and through volatile market conditions and deep social changes. Our spending plans will remain conservative and similar to the numbers outlined in the Tezos Overview document published prior to the fundraiser.”

It appears now that, rather than dumping the funds, the company is diverting some into the VC fund to grow the ledger application base.

The company is currently working on building the ledger, and particularly the creation of the smart contract language. The creation and development of the platform is being recorded via GitHub.

The goal for the company is to create the smart contract language as quickly as possible in order to facilitate programmers wishing to build applications on the platform.

VC funding will be issued to programmers seeking to develop on the new ledger system.