Binance Labs Blockchain Incubator Program To Benefit Crypto Startups
The cryptocurrency atmosphere may be reeling from the tough market situation, but one industry player is marching forward with programs focused on taking the industry to another level in terms of technological developments.
That’s Binance. Fresh from teasing a $1 billion venture capital fund, the exchange is at it again via its Binance Labs initiative.
The world’s largest cryptocurrency exchange Binance has launched an incubator program aimed at helping early-stage blockchain start-ups.
Having alluded to it in early June, Binance chiefs have finally released details of what the program will entail.
According to TechCrunch, the incubator program is scheduled to take up between eight to ten companies, grouped into batches and provide them with needed support for a period of ten weeks.
Binance Labs’ CEO Ella Zhang also added that the platform targets to hold at least one such incubator program every quarter.
The Binance incubation program
The Binance Labs program is huge by all standards. Apart from being bigger than most other incubation programs in terms of frequency, the amount of money the company will use is also massive.
The program will provide selected startups with a $500,000 seed fund in exchange for 10 percent equity in the startup.
It will be a colossal amount of money that the leading exchange will fork out every quarter if it keeps to its announcement of incubating at least 8 companies every three months. Given those numbers, Binance will be expected to part with between $4 million and $5 million every three months.
Binance has, however, not indicated whether the investments will be in the form of cryptocurrency, fiat, or both
But the support does not end with the seed investment only. A dedicated Binance team will also be on hand to help provide mentorship, networking within the batch as well as from startup founders of established companies.
Above all, the incubator program promises to offer the best support services so that startups come up with top products or services.
The inaugural program will be held in San Francisco beginning October 9th this year. Signing up for the program is already underway, with Binance setting the deadline for applications on September 14th.
Companies and startups who wish to take part must then be able to submit their applications by this date.
The 10-week incubation period will end with a demo, in what is called a BUDILer Day. It is a chance of the ten companies to exhibit their products or services to potential clients and investors. The media and major crypto players will also be able to judge these projects.
According to Binance Labs CEO Ella Zhang, the incubator will do all it takes to support most of the projects that come up during the ten-week period. However, more attention will be on projects that leverage blockchain technology to handle public chain scalability and security.
Emphasis will also be on decentralized exchanges, crypto wallets, payments, custody, compliance, decentralized apps (dApps), gaming, and virtual goods among others.
Zhang also added that ideal candidates for the incubator program would those that have not taken up any other investors before, as Binance would wish to provide the first checkpoint.
The program has been scheduled to kick off in San Francisco. However, Binance says its intention is to see it expand all over the world into big cities in Africa, Asia, and Europe.
Binance Labs CEO also emphasized that the incubator program will include “follow-on” investment opportunities for the startups. The main goal is to forge stronger and longer-term relationships between the startups and the top exchange.