Tioga Capital, one of Europe’s leading VC funds focusing on blockchain technology has tripled its assets to €42 million thanks to the support of multiple sovereign wealth funds as well as KU Leuven, Europe’s largest endowment. Their support is reflective of institutional investors’ increasingly positive views on blockchain technology.
Spurred on by the price surges of bitcoin and altcoins in the past year, blockchain (the underlying technology) has been in the mouth of everyone. While some people are already tired of the blockchain conversation, others are just getting started.
Tioga Capital, one of Europe’s leading VC funds certainly belongs to the latter category. Having added more than €25 million to its assets under management (AuM) and thereby more than tripling its AuM, the VC fund is making its position on blockchain very clear.
Patrick Van de Mosselaer, partner at Tioga Capital is convinced that this is only the beginning.
“Blockchain is nearing a tipping point,” he says. “Today, only one or two percent of people have personally been in contact with blockchain, but we expect this share to rise dramatically in the coming years as the technology becomes mainstream,” Van de Mosselaer adds.
Blockchain’s Institutional Players
Van de Mosselaer is not alone in his belief that blockchain is just getting started. Indeed, several sovereign wealth funds (SWFs) – state-owned investment funds – are bullish on the matter too. Both the Flemish (PMV) and the Brussels (SRIB) sovereign wealth funds committed to Tioga Capital in 2021, following the lead of the Walloon’s (SRIW).
“As a venture capital fund, we’re excited to invest in blockchain in its early stages and see the technology reach its full potential. Now we’re also seeing institutional investors – including sovereign wealth funds and endowments – make the jump to the technology,” says Van de Mosselaer.
The cherry on the blockchain cake is KU Leuven’s endowment, the largest in continental Europe.
Commitments by such large players are a promising sign for the partners at Tioga Capital because they are reflective of their belief in blockchain technology.
For many, blockchain technology remains a complicated and controversial topic. Tioga Capital however, is taking all the necessary steps to bring blockchain technology into the light.
“In its early days, blockchain had a bit of a negative reputation. It was perceived as high-risk and due to the lack of regulatory clarity, transactions were often handled offshore. We have deliberately decided to structure all of our funds as onshore products with all the bells and whistles to deliver total clarity and comfort for investors who do not yet have any exposure to crypto. This entails additional scrutiny and efforts in terms of fund formation on our end, but the participation of several SWFs and an endowment in our fund shows this is worthwhile”, says Nicolas Priem, partner at Tioga Capital.
Having already completed its first five investments – including one in Europe’s leading crypto tax company Blockpit – Tioga Capital is setting itself up as an important long-term player in the world of blockchain.