In a blog post published on Wednesday, Silicon Valley-based investment firm Y Combinator announced their expansion into the Chinese market. The firm also announced that they have tapped former Baidu chief operating officer Qi Lu to head their new China division.
Y Combinator provided seed funding for notable firms such as Reddit, Dropbox and crypto exchange Coinbase.
Grand Opportunity For Blockchain In The East
In an interview with Chinese media outlet 36Kr, Lu said today that YC China’s aim is to focus on incubating startups, training talent and fostering research and development, and creating a non-profit research lab.
Lu believes that blockchain’s core features of data encryption and digitization of trust will have a long-term impact on business. He adds that blockchain tech is interesting for its provision of different kinds of incentives.
Lu said in the interview that “at present, the incentives already in the market are usually financial, such as equity and bonds, but blockchain technology may bring innovation in the long-term incentive mechanism,” and he adds that:
“Blockchain technology will lower the threshold for entrepreneurship in [the above] areas.”
While how much YC China will focus on blockchain is still unclear, the firm has already made several moves in the market. Besides helping fund Coinbase, YC backed a crypto investment management startup firm called Cointracker, which raised $1.5 million in funding last April.