Ohio Technology Funds To Invest $300 Million In Blockchain Startups
According to the online news outlet, Cleveland.com, seven funds from Ohio are getting ready to invest $100 million into early-stage blockchain-based startups.
The announcement came on Sunday, December 2, 2018, during the Blockland Solutions conference, from the CEO of the investment firm involved, JumpStart’s Ray Leach, who also revealed the plan to make $200 million more available for the same purpose over the following three years.
It was also unveiled that the local venture fund and business accelerator, FlashStarts is planning to invest $6 million into the pre-seed fund for development of the blockchain technology.
This group of investment firms is looking to make use of Ohio’s “Opportunity Zones”, devised to incentivize investors to enhance the economic development of poor neighborhoods by financing the expansion of new technologies.
Ohio is looking to integrate blockchain with the governing system
Besides the noteworthy move by the mentioned septet, the state of Ohio is taking some huge steps towards catching up with tech-savvy California and its Silicon Valley.
In September, the Ohio officials revealed the “InnovateOhio” initiative, which is focused on:
- Creating a “SmartOhio Operating System”
- Refurbishing paper-to-digital accounts by using the blockchain technology
- Improving procurement by opening up the bidding process
- Establishing an advisory council consisted of the state’s business and technology leaders to provide advice to the administration on improving the customer service
- Starting a cooperation with the private sector to develop and provide innovative data and analytic sharing solutions to the government
- Motivating a contest of ideas to promote innovative studies
Republicans at the forefront
The Republican party’s Secretary of State of Ohio, Jon Husted, stated that the state wants to use blockchain technology for Ohioans to seamlessly share their data with the government.
“If blockchain could create a secure, online identity with all of an Ohioan’s information that they could easily use with any agency, that would cut down on paperwork,” he concluded.
Furthermore, last week, Ohio has become the first state in the United States to accept Bitcoin (BTC) for tax payments, proving to be on the forefront of the cryptocurrency adoption in the country, and pitching itself as a new North American mecca for blockchain and cryptocurrency development startups.
Ohio – a hub for blockchain startups
Back in August, Ohio House of Representatives Speaker, Ryan Smith, grouped some of the state’s most prominent lawmakers, academics and business owners to discuss the future of the blockchain technology.
The group found that Ohio should be positioned “out front” of the new technological evolution we are witnessing at the beginning of the 21st century, and it seems that the state is doing their part to make it happen.
By making data stored on the blockchain and smart contracts treated as electronic records, Ohio has set the stage to become an incubator of the new technological solutions. This new investment initiative made by the mentioned seven firms just confirms that the climate towards the blockchain development firms in the state is indeed favorable.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your own research and/or consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.