Washington-based venture fund Pithia is aiming to invest in companies that build on RChain, a blockchain technology platform whose tokens helped fund the venture firm.
On May 2, the firm announced one of its first investments, participating in a $3 million seed round in Trusted Key Solutions, a secure-digital-identity company for consumers and enterprise needs.
The round was led by Seattle-based Founders’ Co-Op.
Pithia has invested in two companies and expects to make two more deals in the coming weeks, said CEO Lawrence Lerner. It is in the process of changing its name from RChain Holdings, but maintains its mission to invest in companies that will build out the RChain blockchain ecosystem, Lerner said.
The fund has raised about $20 million in the form of a loan of RChain’s digital tokens and is in discussions with potential limited partners including family offices, said Lerner.
Lerner plans to invest between $750,000 and $1.5 million in seed-stage investments in blockchain companies in exchange for 10 percent to 15 percent of the companies’ equity.
The firm will make investments in the form of cash and RChain digital tokens. Although the firm may invest its tokens into companies, it plan to accept only company equity and not tokens, according to Lerner.
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Disclosure: Kaitlyn Bartley and her husband own cryptocurrencies, including Ripple’s XRP.