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> Apparently this startup has $55M in funding but if I was an investor I'd be wondering what the hell they're doing right about now. Blockstream is quite a wei

> Apparently this startup has $55M in funding but if I was an investor I'd be wondering what the hell they're doing right about now. Blockstream is quite a weird company in the bitcoin space. No one seems to have much idea what their business model could be. At the same time they are quite involved with bitcoin core development, which has caused people to make all kind of conspiracy theories etc about them. They probably put a lot from that VC investment to Bitcoin, so they probably have cash to do all kinds of funny things for quite a long time still.

nadaviv 9y ago
No one seems to have much idea what their business model could be. It's not such a mystery, really. One of their investors, Reid Hoffman (LinkedIn co-founder, sits on Blockstream's board of directors) laid it out pretty clearly: > In this instance, the first objective is to increase the public good by strengthening the overall openness and functionality of the Bitcoin ecosystem through “sidechains” technology. Delivering returns to investors is an objective as well – but it’s a secondary objective. ... > And that’s why I’m participating in this first-round financing as an individual investor, and why Blockstream itself will function similarly to the Mozilla Corporation. Here, our first interest is maintaining and enhancing Bitcoin’s strong open ecosystem. And the structure we’ve chosen will give us the freedom and flexibility to prioritize public good over returns to investors. > Over time, I believe this ecosystem-first approach will ultimately create massive economic value – for everyone in the Bitcoin universe, including individual users, businesses of all types, developers, entrepreneurs, and investors. https://www.linkedin.com/pulse/20141117154558-1213-the-future-of-the-bitcoin-ecosystem-and-trustless-trust-why-i-invested-in-blockstream https://www.linkedin.com/pulse/20141117154558-1213-the-futur... quite involved with bitcoin core development There's a common misconception that Blockstream showed up and started hiring bitcoin developers. That is not the case: Blockstream was founded by developers that contributed to bitcoin for many years before starting a company together.
- tlrobinson 9y ago
  > And the structure we’ve chosen will give us the freedom and flexibility to prioritize public good over returns to investors And perhaps those investors happen to also have investments in Bitcoin or other companies that depend on the success of Bitcoin.

nadaviv 9y ago

No one seems to have much idea what their business model could be. It's not such a mystery, really. One of their investors, Reid Hoffman (LinkedIn co-founder, sits on Blockstream's board of directors) laid it out pretty clearly: > In this instance, the first objective is to increase the public good by strengthening the overall openness and functionality of the Bitcoin ecosystem through “sidechains” technology. Delivering returns to investors is an objective as well – but it’s a secondary objective. ... > And that’s why I’m participating in this first-round financing as an individual investor, and why Blockstream itself will function similarly to the Mozilla Corporation. Here, our first interest is maintaining and enhancing Bitcoin’s strong open ecosystem. And the structure we’ve chosen will give us the freedom and flexibility to prioritize public good over returns to investors. > Over time, I believe this ecosystem-first approach will ultimately create massive economic value – for everyone in the Bitcoin universe, including individual users, businesses of all types, developers, entrepreneurs, and investors. https://www.linkedin.com/pulse/20141117154558-1213-the-future-of-the-bitcoin-ecosystem-and-trustless-trust-why-i-invested-in-blockstream https://www.linkedin.com/pulse/20141117154558-1213-the-futur... quite involved with bitcoin core development There's a common misconception that Blockstream showed up and started hiring bitcoin developers. That is not the case: Blockstream was founded by developers that contributed to bitcoin for many years before starting a company together.

tlrobinson 9y ago
> And the structure we’ve chosen will give us the freedom and flexibility to prioritize public good over returns to investors And perhaps those investors happen to also have investments in Bitcoin or other companies that depend on the success of Bitcoin.