Ethereum. tZERO. Lisk. Bancor. ZCash. These are just some of the projects the founders of Alchemist have backed. Twitter, Foursquare, Vonage, iOffer.com, Innovid, and Feedvisor also appear on their collective portfolios and resumes
They are Ethereum ICO co-architect Steven Nerayoff, 19-year venture capital veteran; Internet VoIP pioneer, Jeff Pulver; and Gary Rubinoff, a managing partner at Summerhill Venture Partners.
Alchemist Inc., a full-service blockchain advisory and investment company equipped to do everything that needs to be done to bring an ICO to market, is among those pre-eminent firms behind the initial coin offering phenomenon. But none have quite the resume of Alchemist.
For instance, Alchemist founder Steven Nerayoff, the legal architect of Ethereum’s token sale, inspired billions of dollars in cutting edge fundraising. The firm provides venture financing and underwrites projects. Jeff Pulver is an internet thought leader. In 2004, Mr. Pulver’s petition for clarification declaring Free World Dialup as an unregulated information service was granted by the Federal Communications Commission. (FCC) Both Mr. Rubinoff and Mr. Nerayoff now advise Polymath, a securities tokens platform built on Ethereum.
Alchemist Capital, a $250 million dollar fund, invest into ICOs, blockchain and crypto projects advised by Alchemist Inc.. It will also raise funds for its own tokenized LP unit, and invest in deals that are coming to the company through the Alchemist Money Summit, an annual conference.
“The coins we are launching are freely tradable after regulatory hold periods, which is a year in the US, while elsewhere it is forty days,” says Mr. Rubinoff. “So, that is going to really disrupt the whole venture capital industry, where LP units are illiquid until there are exits in the fund, which is usually between eight and 12 years.”
Several venture capital firms have launched asset-backed tokens in the past year. Blockchain Capital is a San Francisco-based firm that launched its BCAP. The Los Angeles-based Science Blockchain based is doing similar on the heels of an ICO. SPICE VC recently closed an ICO for its token.
“What’s clear is typical companies that would go looking for VC money are now doing their own ICOs and cutting out venture capital funds from putting money into their companies,” said Mr. Rubinoff. “That these companies are taking a different route to raise capital is a negative disruption to venture capital and private equity growth funds looking to invest in these companies.”