Mathias Ruch
Switzerland has consistently produced great things. Switzerland is entrepreneurial, innovative, globally connected, and highly successful. In numerous global comparative studies, Switzerland occupies the top positions, Global Innovative Index #1, Competitiveness Report #3, and Economic Freedom Report #3. Such Swiss success factors have been lived for generations and are internalized in Switzerland's decentralized political system, entrepreneurial spirit, openness, transparency, security, and trust.
As a Swiss blockchain entrepreneur and investor from the beginning, I am inevitably struck by the parallels to the philosophy of distributed ledger technology. The core idea of blockchain is also based on ownership and empowerment. That's why I wasn't surprised that the first blockchain ecosystem worldwide emerged in the heart of Switzerland, in Zug, which counts over 1000 companies today. To understand more, please access the CV VC Top 50 report, a benchmark report that showcases the dynamism here at Crypto Valley. Resultant is the fact that Zug, the heartbeat of blockchain in Switzerland, was just ranked the #1 ecosystem globally by Coindesk. Great freedom inspired and continue to inspire numerous entrepreneurs and brilliant tech minds who build the new decentralized world of tomorrow. Their achievements are already having an electrifying effect across industries. A very recent report from the block, in partnership with Coinbase, highlighted that 83 percent of the surveyed Fortune 500 executives say their companies have either current blockchain initiatives or are planning them - knowing that blockchain is a foundational solution and that not keeping pace will mean losing ground in this global economy to competitors around the world.
Today, it is clear that blockchain is not hype. Neither is it a speculative bubble. Blockchain is the backbone of the fourth industrial revolution, built on decentralization, and enables previously unfeasible business models. Blockchain is the rails on which the technologies of tomorrow will be safeguarded.
Despite hangovers in the tech markets, billions in venture capital flow into blockchain-based projects. This capital, coupled with the best talent working in the field, is more than a bet on the future. They are a promise.
Testimony to this development is CV VC’s Africa initiative, which we launched with the Swiss government (State Secretariat of Economic Affairs), corporates, and universities. The need for alternatives for the unbanked is immense. In Africa, two-thirds of the population is excluded from the financial system. Thanks to blockchain, new ideas are emerging. Companies are developing apps for previously unreached people and building blockchain foundational financial platforms unlinked to legacy systems in a regulated manner.
"Blockchain is the rails on which the technologies of tomorrow will be safeguarded."
At the largest blockchain event in Switzerland, the CV Summit, this autumn, players from the old and the new world come together and present the utility of blockchain-based projects and services. Last year, we had the world's first crypto banks, Seba and Sygnum, Bitcoin Suisse, SDX, the Swiss Digital Exchange, present, and Visa, Citi, Google, the Bank for International Settlements, Coinbase, and LCX.
The recent speeches and comments by representatives of the blockchain space, central banks, regulators, and the financial community emphasize that the time for speculation is over. Now, it is time for utility. This is in line with our investment thesis. Since venture capital differs from financial markets, our investment horizon is longer, and we aim for a return after eight years. We invest in founders with a sustainable vision whose potential is defined for the long term. This is reflected in our current deal flow, where quality and numbers remain high because good projects find money even in bear markets.
Here are examples of what some of our portfolio companies are achieving by building on blockchain technology:
Making Income Fairer: Utopia Music is levelling the music industry through clear, transparent, and reliable data-based solutions that ensure 'fair pay for every play.'
Feeding the World: Five hundred million farmers around the globe have no access to any financial services. Agryo connects small and medium-sized farmers to financial lenders by combining multiple data sources, AI modelling, and blockchain technology.
Sustainability: Proof! is making impact data accessible and measurable for investors and impact providers.
Security: Revix has designed and integrated an anti-money laundering compliance system
Fighting Cybercrime: Asvin is managing the cybersecurity and provenance of software supply chains. Their "Beehive' solution is in action within automotive, aerospace, telecom, medical, energy, and industrial systems.
The Future of Sports Engagement: BlockSport is shaping the future for sports fans and has added Kenya's Rugby Union and the Bulgarian Football Federation
Our vision and philosophy have never been more realistic than today: ‘We invest in blockchain because it is more than technology. It changes how the world works, interacts, and transacts’. Our portfolio includes investments from more than 20 countries. These entrepreneurs are changing the world with their ideas and projects. Watching them closely, supporting them, and helping them succeed gives us at CV VC the utmost satisfaction.
