Venture capital fund to become first to issue own digital tokens

A portion of blockchain fund to come from initial coin offering

Blockchain Capital, which backs start-ups that use the technology best known for supporting bitcoin, plans to raise a new $50 million fund partly by issuing its own digital tokens, becoming the first venture fund to do so.

The San Francisco-based company seeks to raise a portion of its third blockchain fund through an initial coin offering, or ICO, of tokens and the larger part from traditional venture-capital investors who typically contribute a minimum, Managing Partner Brock Pierce, who is also chairman of the Bitcoin Foundation, said in an interview.

The ICO could take place “in the next month or two,” he said.