Blockchain has brought innumerable new opportunities for startups to gain funding, though relatively little guidance has been given to enterprise-oriented startups. According to Business Insider, industry leaders such as financial institutions and Fortune 500 companies are suffering from option overload.
In an effort to help tame the issue at hand, IBM and Comcast Ventures, a venture capital part of Comcast, have backed MState. MState is a blockchain startup accelerator and business fund, they are partnered with Galvanize, a U.S.-based coding school and fund as well as Boldstart Ventures.
MState was established to help achieve widespread adoption and assist industry incumbents, such as banks, Fortune 500 companies, and large conglomerates with expanding their technical understanding into blockchain.
Up until now, legacy businesses have struggled to sort through the massive amount of information available about blockchain technology and find startups who can meet their needs.
How will businesses receive assistance?
According to a report by Bloomberg, startups selected by MState will receive $25,000-$50,000 in funding as well as assistance in closing and supporting enterprise clients. Over the next six months, MState plans to take between five and six projects under their wing. Co-Founder, Rob Bailey intends to connect startups to Fortune 500 clients in need of blockchain direction.
Businesses can utilize these connections alongside their initial investments to create client relationships and help entrenched companies grow within their roles.
How will industry leaders benefit?
Industry leaders currently suffer from information and choice overload. There are thousands of crypto projects, but how can they determine which project(s) will help them reach their goal for implementing blockchain? The answer is simple, they need someone else to sift through the information preemptively.
Industry leaders will be able to gather more clear pictures and extract useful insights from the flourishing blockchain startup niche while avoiding projects which could shed a negative light on the industry by means of fraud, failure to deliver, or any other negative actions.
What may prevent financial institutions from partnering with startups that come through this accelerator?
Business Insider reports that financial institutions may be hesitant to work with startups developed through MState due to a tendency of Comcast to retain IP from their partners. Financial institutions are notorious for wanting to keep IP and other valuable assets internal.
Additionally, legacy businesses such as financial institutions have a record of progressing slowly. Until the technology behind startups has been tested and proven, they may be hesitant to join in the ecosystem.