California-based startup accelerator Boost VC is continuing its "all-in" dive into the bitcoin space with an announcement of a new fund, Boost Bitcoin Fund 2, which promises each company in its upcoming Tribe 5 startup batch an investment of 300 BTC upon completion of the program.
The fund, which was backed by Draper Associates, is one of many recent announcements to come from Boost VC. In November, the accelerator closed a $6.6m funding round led by Marc Andreessen and Ben Davenport and announced that its next cohort would feature only companies working with bitcoin and blockchain technology.
Boost VC's CEO Adam Draper described the Boost Bitcoin Fund 2 as the accelerator's "biggest announcement ever", and noted that the 300 BTC investment (about $113,000 at press time) comes in addition to the initial $10,000–$20,000 in capital that the companies receive upon admission to the accelerator.
Draper explained that the fund will allow Boost VC to continue a program it started with its second batch of startups, Boost Tribe 2, that enabled it to provide $50,000 to each of its graduates.
Boost VC CEO Adam DraperWhile the new fund has no exact limit, the most recent batch of startups to graduate Boost – Tribe 4 – hosted 16 bitcoin startups. Draper told CoinDesk that Boost will likely invest in 15–25 bitcoin startups in its upcoming Tribe 5, which would value the Boost Bitcoin Fund 2 between 4,500–7,500 BTC (about $1.7m–$2.8m).
When asked if the timing of the new fund had any connection to the recent US Marshals bitcoin auction – which his father Tim successfully bid on – Draper told CoinDesk that there was "some coordination between the events", but commented no further.
The accelerator boasts a portfolio that includes Mirror, snapCard and BitPagos, to name a few, and those enrolled benefit from free housing and a highly collaborative environment.
Boost VC is currently accepting applications for its next batch of startups, Tribe 5.
Boost logo via CoinDesk; Demo Day image via Boost VC