Kliner Perkins Caufield and Byers, a Silicon Valley venture capital firm best known for its investments in Google, AOL, Twitter, Uber and Amazon, has introduced a fund called the Edge Seed Fund, which is set to focus on helping early stage Bitcoin- and blockchain-based startups.
The Edge fund, led by Kleiner Perkins partners Mike Abbott and Anjney Midha, plans to offer investments of $250,000 to support selected startups in developing and programming platforms, products and services. The $4 million fund will be operated by former Google product manager Ruby Lee, and the founder of bitcoin and dogecoin transaction service Backlash, Roneil Rumberg.
To help early-stage startups from losing equity in its first few funding rounds, the firm is set to take a different approach for its investments. Instead of taking equity from its startups, the startups will issue a debt-like account called uncapped convertible notes to the VC firm, which can be reclaimed by the startup at any time.
Midha explained that such an approach will assert less pressure on the startups for another funding round, as it will not provide a startup with a specific valuation. Additionally, the startups can choose to reclaim the convertible