CNBC crypto show anchor launches a fund for crisis-hit startups
The venture capital firm OnChain Capital and its CEO Ran Neuner, who is also the host of CNBC Crypto Trader show, have launched a $10 million emergency fund to aid coronavirus-affected startups.
"The Runway Fund" was created in partnership with Yossi Hasson, the managing director of Techstars. The two entrepreneurs and known cryptocurrency promoters teamed up to help out the companies struggling with the economic impact of the ongoing Covid-19 outbreak. According to Neuner, other investors will be contributing to the fund with an additional $90 million.
Although OnChain generally specializes in blockchain businesses, the emergency fund will be supporting various scope companies from multiple industries, as long as they are affected by Coronavirus. Startups are the backbone of the economy and given this challenging time when a number of innovative and promising firms are facing permanent closure, finding sufficient capital is essential, Neuner explained. He strongly believes that The Runway Fund will aid the startups more than stimulus packages offered by the government:
“The Runway Fund provides a practical way to fuel these enterprising startups, giving them the lifeline they need to survive, and ultimately thrive.”
Shortly after the relief fund was launched, there were five contracts already at the table, including a lending platform, an exchange, and a stablecoin. Neuner’s initiative is taking the long view on these blockchain companies because he trusts in their future progress once the crisis is over.
The fellow investors will help to expedite the process by working out which businesses will benefit the most from the investment. Also, to speed up things, all contracts will be standardized as negotiating deals often results in undesired delays. Subject companies can pick between a straight equity option or convertible interest-free loans.
In this stressful time of uncertainty Neuner is putting full confidence in the startups. "We'll get through this", he says, "and markets will recover".