Even between price declines and mixed investor sentiment, Binance, the world's largest exchange, has moved forward, recently launched an internal incubation program for early cryptos and blockchains.
– Binance (@binance) August 22, 2018
This ad more recently arrived at the back of the company's move to launch a $ 1 billion venture capital fund at the start of June, as reported previously by Ethereum World News. While the incubator was to which he alluded in June, Binance is finally released to release details about this new venture, which will see the cryptocurrency platform "support the first-stage teams with the best resources ". According to TechCrunch, Binance Labs CEO, Ella Zhang, noted that the incubation program plans to employ eight to ten companies "per match" for a 10-week term.
What will the incubation program imply? You could ask.
Well, according to the official announcement of Binance, the program will provide its "incubations" with $ 500,000 in seed funds in exchange for a 10% stake in the startup. If the program continues with its eight to ten projects scheduled every 10 weeks, this means that Binance will pay at least $ 4 million almost every two months. It remains to be seen whether this seed investment will take the form of fiat or crypto, however. Together with an investment, Binance Labs intends to provide projects with mentorship, networking and support services, as mentioned in the following list:
- Seed investment: we provide seed funding of $ 500K (10% equity). This allows startups to bootstrap as soon as possible.
- Mentorship: we have the best mentors of both the crypto and startup scenes that will support the startups' journey.
- Network: We help startups to grow their network with important founders who arrive every week, and of course the batch network will become the biggest asset.
- Support Services: we provide the best resources for startups to focus on building products / services.
The inaugural program should begin on 9 October in San Francisco, with the deadline of registration being September 14 for companies wishing to participate in the incubation process. After the 10 week period, the program will end with a "BUDILer Day", which will be the occasion for startups to show what they have created to an audience of potential investors, media and industry leaders.
Zhang added that the incubator will do its best to provide support for projects focused on "public chain scalability, security, decentralized trading, portfolios, custody, payment, coin stability, compliance, decentralized apps, games , virtual goods and more. " The Binance The CEO of Labs noted that the ideal candidates for the program would be a project that still involved all investors, since Binance is trying to take the place of the first third-party investment in a business.
While this program is starting San Francisco, Binance intends to expand its border eventually and could move to other major cities in Africa, Asia and Europe if necessary.