Blockchain venture studio Draper Gorem Holm has announced plans to incubate Tezos-based startups as part of its $ 25 million venture capital fund, underscoring his belief in the smart contract platform.
The venture capital fund, called Fund 1, was launched in October 2020 as a way to incubate emerging blockchain companies. Fund 1 was set up as a traditional venture capital fund targeting emerging fintech and blockchain startups.
The inclusion of Tezos-based projects in the fund is not surprising given the company’s growing support for the smart contract platform. Draper Goren Holm already supports Tezos Stable Technologies, the team behind the USDtez stablecoin. The company has also invested in Kalamint, a Tezos Based NFT Marketplace
Tim Draper, the company’s special limited partner, described Tezos as the ‘leading platform for smart contracts and low energy consumption’ due to its reliance on proof-of-stake, or PoS, consensus.
Alon Goren, founder and partner of Draper Goren Hold, said:
“We believe the differences in the Tezos blockchain, and how it is governed, are monumental for long-term scaling blockchain verticals.”
Tezos was one of the most promising smart contract platforms of late 2019 and early 2020, but has faded from the spotlight amid the bull market. With $ 3.8 billion, XTZ is now in 32nd place by market cap, according to CoinMarketCap.