Through digital media, events, data and more, American Inno is building the largest network of local innovation, cultivating engaged startup, tech and entrepreneurial communities in 11 (and counting) markets across the country. Below, Inno's writers weigh in on the blockchain startups making waves in their cities and states.
While opinions on cryptocurrencies can range from “I'm all in” to “you're out of your mind,” a rare consensus exists surrounding the category. Regardless of which side of the (bit)coin you're on, most agree that blockchain, the technology that serves as the foundation of and infrastructure for digital currencies, has earned the excitement (and venture capital) it's attracting.
In fact, blockchain startups have raised nearly $4 billion in VC in 2018 to date, a 280% increase from last year’s record pull. And blockchain extends way beyond the crypto space, infiltrating a variety of industries from healthcare to media.
To shine a spotlight on the blockchain innovation that's happening across the Inno network, we asked our writers to offer up a local startup in this space that's caught their eye.
Madison // Atlanta Inno
BitPay, definitely. If you’re talking about bitcoin and blockchain in Atlanta, you’re going to mention BitPay. How can you not? A majority of the businesses I found that even accept bitcoin in the city use BitPay. It’s a blockchain payments provider that raised a $40 million extended Series B round earlier this year and announced plans to nearly double the company’s employees here and in Asia. They’ve now hit $70 million in total funding from VCs and claim to process on average $3 billion payments through the BitPay Wallet, a mobile app that allows users to manage blockchain finances. Essentially, they develop software tools that allow consumers to collect online payments via the bitcoin peer-to-peer payment network. Factor in a partnership with Visa, Inc. to roll out a plastic card that lets you convert bitcoin into cash and a partnership with Bithumb, one of the world’s largest crypto exchanges, to facilitate international business transactions in South Korea—you're talking about a hot startup. Makes me want to invest in a bit of bitcoin myself.
Brent // Austin Inno
There are several that come to mind, but I think Factom stands out from the field both for its valuation said to be around $500 million — and its CEO Paul Snow, who is a leading voice in blockchain and cryptocurrencies and president of the Texas Bitcoin Conference. Factom, which has backing from Tim Draper, has landed contracts to protect data housed by the U.S. Border Patrol, the Department of Homeland Security and the Bill and Melinda Gates Foundation. Factom’s other co-founder, Jack Lu, also launched Wanchain, which has landed millions in Ethereum and provides cross-blockchain functions.
Lucy and Sri // BostInno
That's a no brainer. Only a few days ago, Algorand raised $62 million. Also known as “the blockchain for business,” this company fits the paradigm of a young, impressive and aggressive startup. Launched in 2017, it raised funding from 30 blockchain-focused investors all over the world and scored two high-profile execs to join its team. The promise of Algorand is that its one-of-a-kind technology will solve the blockchain trilemma of scalability, security and decentralization, allowing existing businesses to record a larger number of transactions, so to scale the use of blockchain for any enterprise. And who’s behind such a bold claim? An MIT computer science professor, Silvio Micali, who won the Turing Award in 2012 for his work in cryptography.
Jim // Chicago Inno
Spring Labs, a startup with offices in Chicago and LA, uses blockchain technology to allow lenders and data providers to exchange identity information more securely and efficiency. The startup was launched by founders of Avant, a Chicago lending startup valued at more than $2 billion. Spring Labs has raised around $15 million in venture capital, and it generated headlines in October when it hired President Donald Trump’s former chief economic aide Gary Cohn to its board of advisors.
Courtney // Cincy Inno
10XTS. Founded in 2017, this venture lab creates blockchain solutions and products, and has raised $400,000 over two rounds — the most recent of which, a Series A, just closed in early October. It’s not innovating in a vacuum, either; it also took the stage at Techstars Cincinnati Startup Week. From what I can tell, Cincy isn’t bursting at the seams with blockchain companies; it will be worth keeping an eye on the ecosystem to see if this changes.
Nick // Colorado Inno
When it comes to blockchain companies making waves in Colorado, Radar Relay is hard to ignore. Its cryptocurrency technology has created a decentralized exchange that allows users to swap tokens without going through a traditional exchange. Over the summer, the Fort Collins-based startup raised $10 million from Blockchain Capital and other investors in its Series A. Tinder’s Director of Product Jeff Morris has even shown interest in Radar Relay, with his fund investing during the Series A.
Kieran // DC Inno
Not everybody works in policy here in D.C., but one fast-growing crypto organization most certainly does. This summer, the Chamber of Digital Commerce turned 4 years old as the world’s largest blockchain trade association, adding its two hundredth represented company in the digital asset and blockchain industry. In the past year, it made several hires in key positions, launched a foundation to promote and educate future leaders, published several white papers, held its first certified trade mission to the UAE and added major innovators to its executive committee including DocuSign, Discover Financial Services, KPMG, R3 and Salt Lending.
Maddy // Minne Inno
The Twin Cities isn’t exactly a hub for blockchain-based tech (at least today). Crunchbase counts just five blockchain and/or crypto companies in Minnesota, and I’d say they’re not far off. That being said, the few active companies we have here are building some really interesting stuff. Take BanQu, for example. The company bills itself as both a “for-profit and for-purpose" software business that aims to lift people out of extreme poverty by connecting them to the global supply chains they participate in. By helping the unbanked or underbanked interact with the global economy, BanQu helps these individuals develop a credit history and economic identity. Earlier this year, BanQu raised just under $2.5 million in venture capital.
Courtney // Rhode Island inno
According to Crunchbase as of today (that’s Oct. 22 for you future readers), Rhode Island currently has zero (read: 0) blockchain companies in the state. That doesn’t mean that the industry isn’t on entrepreneur’s radars, however. In fact, residents (and gubernatorial candidates) are advocating for more blockchain presence in Rhody, with the state even hosting a day-long event in Providence this summer for leaders at blockchain companies across the country. The mission? Making sure these organizations knew that the Ocean State’s leadership is “absolutely open for business, and we want to work with you guys.” In the meantime, blockchain enthusiasts have a way to share their passion: via the 2018-born Rhode Island Cryptocurrency and Blockchain Association.
Kieran // Richmond inno
Block.one, for sure. In the nearby small city of Blacksburg, Va., the maker of the world's fifth most valuable cryptocurrency expanded its footprint in a major way this year. The blockchain company, which has offices around the world and was founded just a couple years ago, moved into its own 30,000-square-foot building in the Virginia Tech Corporate Research Center in October. Block.one created EOS, which raised $4 billion in an initial coin offering, and it's backed by Peter Thiel — making it by far Central Virginia’s biggest blockchain startup.
Katherine // Wisconsin Inno
A cryptocurrency startup in Milwaukee called Coinigy gives crypto traders the tools they need to buy, sell and manage their portfolios. Users get access to data on more than 40 exchanges and the ability for users to trade on nearly 20 exchanges. Though the company was founded in 2014, it just launched its mobile app in May to let traders trade on the go, and now has upwards of 80,000 users, roughly half of which pay about $20 per month for the product. And the founders say revenue has grown 300 percent year-over-year, which is pretty impressive.
