BitAngels – 60+ Multi-City Investors Pool $6.7 Million To Fund Bitcoin Startups (~$20,000 USD each)

BitAngels – 60+ Multi-City Investors Pool $6.7 Million To Fund Bitcoin Startups (~$20,000 USD each)

The more we read, the more fascinating Bitcoin is!

Since we’re still in research mode, we’re in a cross between older articles and blogposts to learn about Bitcoin; while receiving Google Alerts and the Bitcoin Newsfeed to keep us informed about the latest and greatest things happening in this space! It’s exciting and confusing, so we’re carefully creating Categories and Tags to keep all this information organized for us, and you–our reader…Now, to

BitAngels

Like Wow–what a amazingly-quick and truly-exciting roller coaster ride they’re on right now!

Some of the initial dates may be wrong since Reddit is hard to read. For example, 16-days from today is May 22nd (which will only be the date posted not necessarily the date when things happened. Also, in the many articles we read, “the Sunday before the 28th is the 26th” and 9-days before 28th is the 19th of May.

So, unless David or Micheal are reading to correct our misinformation of these dates; the main point to gain from this blogpost is that money is being invested in Bitcoin startups to legitimize these businesses and a HUGE amount of money, time and effort is being invested towards making Bitcoin more mainstream–and that’s one of our goals here in BitKidz (though we don’t have $10Ks or $1millions to do it). ;-)

May 22nd: David A Johnston, one of the founders posted on reddit their new website before attending the 2013 Bitcoin conference in San Francisco.

May 22nd: Co-founder, Michael Terpin came up with the name BitAngels. David and Michael were supported by angel investor/”polymath” Sam Onat Yilmaz. They invited about 6 people to the first BitAngels meeting. Over 20 people attended! Here are the meeting notes.

May 22nd: Over 35 people joined BitAngels.

May 27th: TechCrunch covered their story. Over 60 investors joined BitAngels with $6.7 million to fund Bitcoin startups at $20,000 USD each. Three satellite offices with office hours will be located in Austin, San Francisco and New York. They’ll offer incubator-like mentoring and support to the startups.

BitAngels is not a formal fund, so the Bitcoins are soft-circled, not in escrow, but all 60 angels that have joined thus far (the number of angels has almost doubled in the past week) are all accredited investors with extensive experience investing and, naturally, have a lot of Bitcoin. Some mined them, I’m told, but the majority were simply fortunate to get in early when the price was low. And, for those “Bah, it’s already too late” naysayers, they’re still bullish on the market.

May 28th: Solidifying what the startups will get if accepted:

Startups that are using digital currency to disrupt an existing industry can apply. If accepted, they receive $25,000 as well as 1,000 hours per month of support from developers, designers, business developers, and advisers in the community... “BitAngels is aiming to accelerate new Bitcoin startups from weekend tech hobbies and/or early-stage “garage startups” to full time, professionally run and consumer friendly services,” said executive director David A. Johnston.

Fascinating well-balanced Bitcoin Views

“Bitcoin is basically The New Internet, built on top of the existing Internet,”Johnston said. “Today people think of it as a payment method, but the technology is going to enable so much more than that. Right now companies are launching early stage efforts to completely disrupt stock trading, bonds, titles, agreements, smart property, messaging, and a dozen other now centralized industries. In short, decentralized solutions are going to outcompete centralized services in a lot of industries very quickly. Bitcoin is not only here to stay, but your grandmother will be using it in the very near future”

No-one really knows what will happen with Bitcoin. It could change the way people think of money and transform the entire landscape for payments. Or it could prove too unstable and never make significant inroads into the financial industry. BitAngel’s goal is to create an environment that supports startups taking on these challenges and make Bitcoin more mainstream.

May 30th: Now, 65+ investors, David is an Austin resident and will coach in the Austin office as BitAngel’s Executive Director.

BitAngels members and investors will provide mentoring services and help with marketing, commercialization and incorporation.

June 4th: BitAngels have received over 60 startup applications already! David shares in his interview that many applications are very promising, and enthusiastically shares cool ideas like Better Wallets, colored coins and Bitcoin transfers via social media like Facebook and Twitter. David’s excitement level is quite obvious, and he insists that anyone with an idea related to digital currency (so, it’s not limited to Bitcoin), should definitely contact them. Also, he encourages investors to join BitAngels too.

Funding range from $25,000 startups to $250,000 in higher levels.

BitAngels share that they are the “world’s first distributed veteran entrepreneur and angel investor group”.

So, in 16-days they went from a 3-man idea to 65+ investors investing $6.7 million in 3 major cities all dedicated to Bitcoin development. WOW!

BitAngels Is Accepting Limited Summer Applications for 3-months

So, what’s your great idea worth $25,000 and 1,000 hours of mentoring and support!? The categories are:

  • Colored coins
  • Escrow
  • Bitcoin in Developing Nations
  • Bitcoin Adoption for the Masses
  • Peer to Peer Mining
  • Hardware Wallets
  • Friendly Jurisdictions
  • Other

While we didn’t see any age restrictions…and we have “Other” ideas totally worth someone’s investment…we prefer this advice given by these Bitcoin startups: “All the panelists warned would-be entrepreneurs not to spend too much of their time and energy pursuing funding at the expense of working on their product.

By the way, did you see the Team? They’re all tech-guys! We wonder how many of the 65+ are women, if any. We’ll just have to make a name for ourselves, right!? ;-)

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Comments

Luzia says:

Even though there is a huge inescare in h/ps calculating power getting ready to come online, the algorhythm is still set up to adjust the level of difficulty in order to control the amount of Bitcoins created. So in other words, just because there may be a 1000-fold inescare in computational power to create bitcoins, the difficulty level will also inescare so that the same amount of BTC created would still take as long as it did before there were so many GPUs mining. Per ? : Blocks are mined every 10 minutes, on average and for the first four years (210,000 blocks) each block includes 50 new bitcoins. As the amount of processing power directed at mining changes, the difficulty of creating new bitcoins changes. This difficulty factor is calculated every 2016 blocks and is based upon the time taken to generate the previous 2016 blocks. The last block that will generate coins will be block #6,929,999 which should be generated at or near the year 2140. Also: If no more coins are going to be generated, will more blocks be created?Absolutely! Even before the creation of coins ends, the use of transaction fees will likely make creating new blocks more valuable from the fees than the new coins being created. When coin generation ends, these fees will sustain the ability to use bitcoins and the Bitcoin network. There is no practical limit on the number of blocks that will be mined in the future. Just an FYI.

Okan says:

So you are effectively steting up a sort of insider trading/ collusion racket. You claim to provide info , and other people follow along to time their trades and influence the market. I finally see why some say Bitcoin needs regulation to avoid schemes like this (though regulation would be difficult if not impossible to achieve without just shutting it down, due to the anonymity factor). Nice job taking advantage of what is there, I don’t blame you. But I also don’t want to pay the tax on being part of the group.

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