US crypto giant Coinbase has unveiled plans for a new crypto and AI accelerator in the UK, even as some in the digital asset industry withdraw from the country.
The accelerator will see Coinbase partner with UK venture studio Founders Factory and crypto investors Animoca Brands and Fabric Ventures to create a 16-week program for founders building in the blockchain and AI space. The initiative will be officially announced at the Global Fintech Forum on Monday, overseen by the UK government’s Department for Business and Trade.
“The UK government is really excited about pushing forward crypto regulation in the UK and crypto delivering growth for the UK economy,” Coinbase’s UK CEO Keith Grose exclusively tells Sifted.
The program
Founders Factory will work with selected founders on business strategy, product development and fundraising. Meanwhile Fabric, Animoca and Coinbase pledged to share their web3 expertise to guide the fledgling startups on crypto-specific strategies, such as tokenisation (many crypto companies opt to launch their own token on crypto exchanges).
Around eight successful applicants in the first cohort will receive a £250k cash investment in return for an estimated 5% stake in their companies. The program will culminate with a demo day in which founders will pitch on-stage to would-be investors.
Founders Factory chief operating officer Damian Routley tells Sifted companies hoping to join the inaugural cohort have to be either working towards launching a token or have a tokenised business model already in place.
“What we’re looking for is people that are building real-value, high-integrity, trusted applications that will drive broader market adoption for either consumers or enterprises,” he says.
Routley says applications are expected to open in June, with the program kicking off in September.
Making UK crypto great again
The launch of the new accelerator comes amid talk that the UK missed the boat in its bid to become a hub for the sector.
Sifted previously reported recently-departed city minister Tulip Siddiq didn’t make crypto a priority and cancelled several meetings with crypto companies, according to people with knowledge of the matter. Andressen Horowitz, one of the biggest crypto VC investors in the world, also closed its UK offices in January this year to focus on the US crypto market following Donald Trump’s re-election.
Jonathan Reynolds, the UK government’s business and trade secretary, says the launch of the accelerator is a “a strong vote of confidence in the UK’s tech sector” and will “ensure that the UK remains a key leader in blockchain technology.”
Both Coinbase’s Grose and Founders Factory’s Routley are confident about the UK’s crypto industry prospects, citing the current consultations on crypto regulation conducted by UK financial regulators.
“Financial services and fintech have always been at the beating heart of the UK,” says Coinbase’ Grose. “Crypto and blockchain have a natural fit here.”
Read the orginal article: https://sifted.eu/articles/coinbase-founders-factory-accelerator/
