Blockchain Technologies Corp and Steem Inc. Announce $20m Fund for SMTs - A Brief Explainer for Non-Tech/VC Knowledgeable Steemians

Two days ago, Blockchain Technologies Corp. and Steem Inc. announced their new collaboration in the form of a new fund of USD 20 million, in order to kickstart development and growth new ventures built using Smart Media Token protocol native to the Steem blockchain.

The fund will invest in new startups planning to roll out their own SMT, and will back these teams in a combination of STEEM and fiat currency (USD).

Rik Willard, CEO of Global Blockchain Technologies Corp. said:

"We're proud to be the first publically traded company to make a significant investment in the Steem ecosystem. No current open source and public blockchain protocol is more mature, scalable, and as rapid as Steem."

The announcement was also backed by Ned Scott, CEO of Steem Inc.:

"Today's announcement makes the future for Steem brighter than ever. The Steem Blockchain is faster and already larger than the Bitcoin and Ethereum blockchains combined, and working with Global Blockchain Technologies Corp. is going to exponentially increase the number of applications built on Steem in an accelerated amount of time."

101 for Non-VC Pros: What Does This Mean?

While no terms, or details, of the collaboration and plans were announced, the collaboration's announcement sounds like a classic angel/early-stage investment fund. Blockchain Technologies Corp and Steem Inc. will make decision about funding, and the size of each investment, together.

Traditionally early stage funds will invest anywhere between $250,000 and $2 million in early stage startups, depending on the team and concept, that usually for around 15% equity.

Even in this era of ICOs, this is important because it will give new teams with ideas leeway and allow them to focus on developing their product and building it, as well as investing in promoting. And cover legal costs.

At the same time it means that the founding team can pay itself a wage, and can focus 100% on their new project without needing to worry about their private financial obligations. Funding allows commitment. Funding also allows startups to recruit new team members.

This means that projects need not be built as side projects, or the team members don't need to freelance on the side. Neither should a team struggle to be able to afford all legal expenses which come with registration, incorporation and contracts, as well as the cost inherent to preparing and running an ICO. Often this presents huge issues for bootstrapped teams, just like the ability to promote their product and find users for them.

Given that the future of the Steem blockchain may/could depend on the ability and success of building a true ecosystem, an economy in which Steemians can both earn and spend, it is primordial that teams who want to build SMTs are given the opportunity to develop and launch their product, as these SMT-based ventures will contribute to the value and consolidation of the STEEM crypto currency.

There's More to It

Having investors in early stage projects, startups also opens the rolodex of investors to its fundees.

The fund being launched, and operated, by Blockchain Technologies Corp. and Steem Inc. will open the door to more investors as well as other projects in the joint portfolio and thus give startups an additional platform and maybe even easier access to stage time too at blockchain conferences.

Obviously, this also means that more investors will have a look at the Steem blockchain, long before SMTs actually are integrated to the blockchain. This will open up even more venues for founders to apply for funding.

Funding isn't a guarantee to success, but funding by an experienced backer, by investors who play the long term game, does bring additional knowledge, guidance and visibility as well. Great early stage investors will make time for their portfolio companies and help them navigate the wild waters and survive the rollercoaster that new businesses can be at times.

Some of the companies backed by the joint fund will fail, some will even never see the daylight yet others will become active, operational platforms catering both to Steemians and also everyone who is online. Some may even become very popular Internet household names.

I Have an Awesome Idea for a Steem SMT, Can I Apply for Funding Now?

Little is known about the fund so far, and according to the announcement, the fund will be fully deployed in 2020.

Most early stage VCs and funds are very accessible though and can usually easily be pitched by email. But they like reading pitches in specific formats. To get a reply to your email/pitch, it is important that you can easily convey to investors why they should get on board and back you.

Explain your vision and how you want to achieve that. What steps will you be taking in the next 6-12 months to launch, how will you get users to your project?

Before, though, do your homework. Learn the basics about pitching via cold-call mails, learn how to write your pitch deck. Even VCs like easily to digest reading and to be caught by an opportunity. Don't expect a VC to care about your attached 37 pages whitepaper if you didn't also provide an easily digestible, but super interesting, pitch deck they can skim through in a minute.

It's like dating via Tinder almost: the first impression matters.

Remember, if they are accessible for you, so are they to the millions of other Youtube disruptors out there. You want to make an impression, not be the next buzzword-laden drivel mail in their inbox. They've seen and read most ideas already so make sure that you're awesome and catch their attention with your first paragraph already.

@Ned, and other prominent Steem Inc. employees, get lots of best idea ever pitches. Every day. You can be sure of that.

So, before anything, make sure you know and understand SMTs first.

If you have an idea you want to develop and build as an SMT, doors are starting to open now. Ever more.

The announcement of this joint Blockchain Technologies-Steem Inc. fund, aimed to kickstart adoption of SMTs. by backing the active development of businesses operating with the SMT protocol, is exciting an opportunity to prospect founders, both pros and lesser experienced ones.

And even more exciting an announcement for the future of the Steem blockchain.

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