Switzerland’s Crypto Valley in the canton of Zug, has seen a new blockchain-focused incubator launched called Genesis Hub. The launch was conducted by a government-backed consortium founded in March 2017, called Crypto Valley Venture Capital (CV VC). The purpose of the CV VC is in “supporting the development of blockchain and cryptographic related technologies and businesses.”
The incubator will follow the standard practice of providing a shared office space, mentorship, as well as seed funding in return of shares from the participating startups. The incubator is currently hosting 20 new companies with the aim of funding 60 new blockchain startups every year. The CV VC first among the many planned incubator, is providing a three-month boot camp program, that will see the startup receive $125,000 to build their businesses, some of these business will pass into the next round and be up for additional funding. The cost of entry will be an 8% ownership in shares of tokens.
The consortiums plans to be gateway for one thousand startups to begin business every year, to grow the blockchain field. This will be accomplished with the opening of incubators around the world. The business model for many of these fledgling companies will be to garner additional funds through initial coin offerings (ICOs) as well as going the more traditional route of an initial public offering (IPO).
Vasiliy Suvorov, CV VC advisor and vice-president of the Crypto Valley Association, commented:
“ICOs will continue to be a useful mechanism but they will no longer be core to the blockchain economy. We have had all the hype about ICOs, and now we need a model that takes all these great technology ideas and brings them into the real economy.”