IBM is bullish on the blockchain. The tech giant has let its actions speak for its views on the emerging technology by investing a considerable amount of energy and time to building applications with it. What it hasn’t done, however, is actually put money on blockchain startups through its venture arm, IBM Ventures. That’s set to change soon based on revelations from insiders at the venture capital firm.
According to CoinDesk, partner Christoph Auer-Welsbach has stated that the time is right for IBM Ventures to put money down on a blockchain startup. Recent changes in strategy at the firm, including the move away from exclusively funding in the Series B round or above, make it a conducive juncture for such as move. Auer-Welsbach revealed the company is particularly interested in startups building products and services in the compliance and supply chain management verticals.
There are a few prerequisites that have been laid down in order for blockchain startups to be eligible to receive cash from IBM ventures. The focus is on B2B products, and funding will be handed out between 18 months and 5 years following the company reaching maturity. For a venture to be truly attractive to the partners at IBM, it will need a strong portfolio of clients and a proven business model. IBM Ventures’ previous investments, such as the one in software infrastructure startup LightBend, illustrates that same emphasis on enterprise-facing products with a sizable corporate customer base.
As much as IBM Ventures’ evincing an interesting in funding blockchain startups is an important development, the company’s focus will remain on strengthening its suite of homegrown blockchain products. Those efforts are currently based on Hyperledger Fabric, a collaborative cross-industry tool by the Linux Foundation. The company has both a platform that supports developing applications on the blockchain as well as services around the design and implementation of blockchains. These services have been used by companies like Walmart and Northern Trust in various capacities.
IBM’s directed efforts in the blockchain technology space has helped it score over big-name rivals. A recent study by Juniper Research showed that IBM is regarded to be the strongest player in the blockchain industry, upstaging companies like Microsoft and Accenture in the process. The enterprise survey took into account the feedback of almost 400 founders and managers. The development bodes well for IBM, which is desperate for a positive uptick in revenues after not having registered a growth in sales for over five years. Blockchain could potentially be the technology that tides it over this trying period.
This article was written by one of our guest writers
Author: Prateek Jose
If you would like to write for us, get in touch at firstname.lastname@example.org
Follow us on Twitter – Click here