Participated · Safe · Oct 2019

NuCypher develops encryption services based on proxy re-encryption, enabling files to be encrypted to many recipients while allowing administrators to grant and revoke access. The company launched a public testnet and has said it is nearing mainnet launch. NuCypher has adopted a token model to decentralize infrastructure: node operators will run the software, earn tokens via new emissions and network fees, and staking operators such as Bison Trails, Grassfed Networks and Staked are already running nodes. The protocol uses an initial ERC-20 token supply of 1 billion with token economics that include inflation diminishing over time as fees grow. NuCypher has also announced a WorkLock distribution (users put ETH into a smart contract to receive tokens, with ETH burned unless tokens are staked) and plans to designate roughly 250–400 million tokens for that program. To foster app development it ran a hackathon with CoinList and several MVPs are live, including Stridon, Snowden and NuBox. NuCypher builds a proxy re-encryption layer that lets enterprises process sensitive data across distributed big‑data platforms (Hadoop, Kafka, Spark) without exposing encryption keys. The team pivoted from an encrypted database to a generalized encryption SDK and library and today is launching an open‑source release. It is running pilot deployments with major banks (about six to seven pilots) and is seeing early traction in healthcare and telcos. The product integrates with hardware security modules and NIST‑standard crypto so customers can keep existing algorithms like AES‑256. NuCypher licenses its software (term‑based subscriptions and a consumption model for cloud deployments) and does not host customer data. The company is small (two founders and seven people) and plans to expand pilots into high double‑digit or low triple‑digit customers while broadening supported platforms in future.

Participated · Series B · Dec 2018

ErisX launched a spot market supporting dollar trading pairs for bitcoin, bitcoin cash, litecoin and ethereum, plus bitcoin trading pairs with the other three cryptocurrencies. Its platform includes both an exchange and a clearinghouse, allowing custody of cash and digital assets. The company says the spot launch is an initial step toward broader plans to offer futures, which are pending regulatory approval of its derivatives clearing organization (DCO) application with the CFTC. ErisX is continuing to build out its exchange and clearinghouse technology stacks and to onboard clients. Management expects customers for both spot and futures markets in the coming months as the platform develops. The company has been fundraising to support that development and has also added NYDIG COO/CFO Rob Flatley to its board alongside ConsenSys' Joseph Lubin. ErisX operates a single platform for individuals and institutions to access digital asset spot and futures markets, combining professional trading tools with regulatory oversight. The company plans to enable trading of cryptocurrencies such as Bitcoin, Litecoin, and ether on both spot and futures markets starting next year, pending regulatory approval. ErisX intends to operate as an intermediary-friendly, CFTC-registered futures exchange with a clearing organization registration pending, and to run a regulated spot market for digital assets. The firm emphasizes security and regulatory compliance as core differentiators for institutional and individual participants. Leadership includes CEO Thomas Chippas, chief commercial officer Kelly Brown, and Head of Clearing Liz James. Financially, the company recently completed a Series B round to fund platform development and team expansion. ErisX is launching a derivatives exchange (DCM) and clearing organization (DCO) that will offer fully regulated digital asset futures and spot contracts on a single platform. The platform is designed to provide a regulated, transparent and stable venue with centralized exchange infrastructure for institutional and individual traders. ErisX plans to integrate digital asset products and technology into compliant capital markets workflows and to accelerate investments in the platform and team following a recent funding round. Leadership changes accompanying the launch include Thomas Chippas as CEO and Neal Brady as Executive Chairman. The company is backed by a broad syndicate spanning traditional capital markets and digital-asset investors, which the team says will contribute expertise and market input. Aspects of the offering are pending regulatory approval; no revenue or user metrics are disclosed in the announcement.

Participated · Equity · Sep 2018

Founded in 2014 and based in Taiwan, CoolBitX builds cryptocurrency security products including the CoolWallet S Bluetooth hardware wallet and Sygna, a travel-rule compliance solution for VASPs. Sygna is designed to help virtual asset service providers meet the FATF "travel rule" by securely transmitting PII during transactions. The company says 12 cryptocurrency exchanges have signed memorandums of understanding and are using or testing Sygna, including SBI VC Trade, Coincheck, Bitbank, DMM Bitcoin, BITpoint, MaiCoin, BitoPro and Ace. CoolBitX says Sygna has been tested and proven by users, which the founder argues differentiates it from competitors. With the new funding, the company plans to expand Sygna’s presence beyond the Asia-Pacific region. The startup raised a $16.75 million Series B to support these efforts. CoolBitX, founded in 2014 and based in Taipei, Taiwan, makes the CoolWallet S, a credit-card-sized mobile secure cold-storage hardware wallet. The CoolWallet S features an e-ink display, a physical confirmation button, Bluetooth connectivity and 2+1 factor authentication security. The device is described as damage-proof (waterproof, heat- and cold-resistant, and tamper-proof) and supports over-the-air updates, currently supporting Bitcoin, Litecoin, Ethereum, XRP, Bitcoin Cash and ERC-20 tokens. CoolBitX provides native iOS and Android apps that offer a mobile dashboard to exchange, monitor, and store crypto. The company announced the U.S. launch of the CoolWallet S, a partnership with the Litecoin Foundation, and plans to open a U.S. office to expand its American presence. Financially, CoolBitX raised $13M in venture capital from multiple strategic backers. CoolBitX is a Taiwan-based company that builds the CoolWallet bitcoin hardware wallet and embedded security devices for protecting private keys. Its product includes signature authorization and verification mechanisms that synchronize with a smartphone, a built-in backup facility, and support for offline pass phrases to recover lost or stolen devices. The firm plans to use a recent $500,000 investment to create new implementations of its wallet security for IoT devices, the medical industry and other blockchain sectors where identity is paramount. Product roadmaps shown to CoinDesk include a secure communication system to encrypt smartphone files, a decentralized bitcoin exchange, and co-branded wallets with enterprise clients. CoolBitX also intends to develop a “blockchain medical record” that encrypts medical data with private keys and uses HD wallet architecture to offer different levels of access for institutions and staff. The company is positioning its CoolWallet technology as a more broadly applicable decentralized security protocol for non-cryptocurrency applications.

Led · Seed · Aug 2018

tribeOS is a digital advertising platform built on the Bitcoin Cash (BCH) blockchain that aims to eliminate ad fraud and provide advertisers and publishers with contextually appropriate ads alongside security and privacy protections. Led by CEO Matt Gallant, the company is developing the tribeOS marketplace, scheduled to launch in 2019. It raised $3M in seed funding to build out its core team and advance product development. tribeOS is working in partnership with the Bermuda Business Development Agency to issue its own security token, called FIRE. The platform emphasizes fraud prevention and publisher/advertiser control within a blockchain-based marketplace.

Led · Series E · May 2018

Circle launched ARC, a public blockchain designed for institutional contracts, governance, and AI agents, with USDC as the settlement currency. The company completed a $222 million presale of ARC tokens that values the project at about $3.0 billion on a fully diluted basis. The presale was led by a16z and included institutional participants such as BlackRock and Apollo. Circle will hold 25% of the token supply to fund validator rewards as part of the network’s tokenomics. The financing was executed via a token presale rather than an equity infusion. The transaction positions Circle to bootstrap ARC with institutional backers and a built-in token allocation for network security and incentives.