BlackRock Analysts Quit to Initiate Eterna Capital Blockchain Investment Fund
Three analysts at BlackRock Corporation quit jobs to create a 20 million USD VC fund
Three analysts at BlackRock Corporation quit jobs to create Eterna Capital, a 20 million USD Venture Capital fund. On 2nd May 2018, Financial News reports that these employees left the 6.3 trillion USD worth BlackRock investment firm to focus on blockchain projects through the new venture capital fund.
The VC fund of Eterna Capital plans to gather institutional investors and work under the guidance of Andrea Bonaceto, who was the mastermind behind HiredGrad online recruitment platform launched in 2014. In late April 2018, Bonaceto launched the company with past employees of Black Rock; Asim Ahmad, Mattia Mrvosevic and Nassim Olive.
Aims of Eterna Capital
The plan of Eterna Capital is to make investments in solutions related to blockchain technology connected to Sustainable Development Goals of the United Nations. These include solutions for clean water, poverty, hunger and clean energy. Bonaceto stated the following;
One example is the disintermediation of banks in under-banked third-world countries, so people don’t need banks to get a loan, as the money can be held on the blockchain. Or selling solar power between neighbors, rather than relying on an energy firm, is another example of how blockchain can be used for social impact.
The expertise of Olive connected to insurance companies at Blackrock motivated him the presence of institutional enthusiasm to invest in the blockchain technology. Large investors are cautious to directly invest in such ways because of the market size.
2017 was the year of Bitcoin and ICOs [initial coin offerings], but we are convinced 2018 will be when blockchain and cryptos will rise as an asset class, and when institutional money moves into this market.
Olive expressed the thinking behind the launch;
“No way they [large institutions] will risk the reputation risk by launching a 20 -100 million USD blockchain or crypto fund… This is why more people with an institutional track record are launching their own ventures.”
Earlier in April, Rachel Horowitz former Twitter, Spark Capital and Facebook communication expert quit her job at Facebook to join as the Vice President of Communications at Coinbase digital currency exchange.