Tim Draper becomes a third partner in LA-based blockchain accelerator

The famous cryptocurrency investor doubles down on blockchain, investing $3 million into Draper Goren Holm Ventures. The Los Angeles firm already has a dozen companies in its portfolio.

Tim Draper, a prominent venture capitalist and an early supporter of bitcoin, has invested in Draper Goren Holm Ventures, a Los Angeles blockchain accelerator and incubator.

Draper put a majority stake of $3 million in fresh funding for the firm and became the third partner along with founders Alon Goren and Josef Holm, Goren tells Venture Capital Journal. Prior to Draper’s joining, the firm did not have outside funding, Goren says.

“I am excited about doubling-down on Los Angeles and blockchain with the premiere blockchain conference and accelerator team in LA,” Draper said in a statement.

Goren and Holm are co-founders of the Crypto Invest Summit and Security Token Summit, two of the world’s leading conferences in blockchain and cryptocurrency space, according to Goren.

The incubator already has 12 pre-seed and seed-stage startups in its portfolio, Goren says. Until Draper’s involvement, the firm was providing operational and marketing support to its investment companies and writing very small checks from the firm’s balance sheet, he says.

The incubator and accelerator will use the new funding to help portfolio companies “get off the ground and help them ship their first product,” Goren says. The firm’s check sizes will range up to $250,000, with most companies receiving between $25,000 and $50,000 from the accelerator, he says.

“We don’t have a traditional accelerator class,” Goren says. “We help amplify companies’ marketing efforts and provide tech advisory.”

Draper Goren Holm is geography agnostic and has backed companies based in Tel Aviv, Texas, Michigan and Florida, Goren says.

The accelerator was founded last year and was asked to join the Draper Venture Network’s  Beta program earlier this year. DVN was founded by Draper and consists of more than 20 micro and seed-stage VC funds worldwide.

Although several funds within the DVN network use the famous venture capitalist’s name and brand, such as Draper Dragon and Draper Esprit, not all the firms within DVN receive capital from Draper.

“It is an organization that helps funds and companies with networking, and sometimes Tim invests in the firms,” Goren says.

Draper is known for his investments in Tesla, Hotmail, Skype and Coinbase.