Harvard’s endowment fund has reportedly invested as much as $12.65 million in Blockstack.
The NY-based blockchain toolmaker applied with the SEC to raise $50 million. The application filed to the regulator mentioned the names of Blockstack advisory members, including one of the newly appointed managing directors for the Harvard Management Company, Charlie Savaria.
Per the document, Savaria and six other advisory members bought an aggregate of 95,833,333 Stack tokens (STX). The STX rate was $0.0132 at the time of sale. Meaning, Blockstack attracted $12.65 million from its advisory board through the token sale.
Morgan Creek Capital co-founder Anthony Pompliano said Savaria could have at least invested $5 million in the blockchain venture.
Blockstack is creating a privacy-focused internet that harnesses the blockchain’s underlying features. The startup presently has 80 applications that do everything like offering subscription-based content services and managing work documents.
Blockstack previously raised $50 million in a venture investment round from Naval Ravikant, Lux Capital, Y Combinator, Union Square Ventures, etc.
In 2018, Harvard injected capital into two crypto funds. The outlook showed the university was slowly raising its stakes in the blockchain sector despite skepticism. Last December, for example, First Round Capital surveyed 529 startup founders. It discovered that 87% of the respondents don’t think blockchain will succeed.
“Projects based on the elimination of trust have failed to capture customers’ interest because trust is [actually] so damn valuable,” True Link co-founder and chief executive Kai Stinchcombe said.
US-based economist Nouriel Roubini claimed that the recordkeeping ledger of blockchain was no better than MS Excel sheets.
Nevertheless, the world continues to understand the technology’s trend, giant tech companies like Intel and IBM releasing projects in the space. Banks such as JP Morgan also introduced their services powered by a similar technology—although closed-source.
Harvard’s alleged investment indicated that investors were starting to look beyond criticism and take advantage of the blockchain frenzy.
The startup’s crowdfunding holds no promises to the most dominant asset within the crypto world. It is a straightforward fundraiser focusing on generating capital to enable a startup to develop its products and distribute earnings among stakeholders—those with proof-of-ownership of STX tokens.