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March 2, 2021

Rockaway Blockchain Fund invests in the Centrifuge start-up, which helps companies finance short-term debt

The Rockaway Blockchain Fund, which specializes in investments into blockchain technologies and decentralized finance (DeFi) is adding its 22nd investment to its portfolio: German start-up Centrifuge, which connects investors looking for stable income with companies that need access to capital.

The fund, which was created in June of this year with a target of investing $ 100 million (over CZK 2 billion) in cooperation with eight other investors such as the Galaxy Digital fund or IOSG Ventures, sent the promising German start-up $ 4.3 million during this round of investment.

“We see Centrifuge as a pioneer, one of the first to bring interest from the traditional world of finance to the world of blockchain. We’re confident that this experienced German team, headed by Lucas Vogelsang, will succeed in providing even greater opportunities both for investors looking for returns as well as companies that need access to capital,” says the head of RBF, Viktor Fischer. The founders of Centrifuge are building on experience from their previous start-up, Taulia, into which investors like Lakestar, JP Morgan, and BBVA invested a total of $ 300 million.

Centrifuge is an ideal addition to the fund’s current portfolio, which includes companies like Solana, Terra, Opium, and 1inch. In this case it connects investors looking for stable income with companies that need access to capital. Centrifuge thus allows companies to finance short-term debt, such as invoices they have issued. That’s because blockchain has two advantages. First, it allows loans to be automated, and second, it is capable of providing a new source of capital, for example from investors into blockchain platforms such as Compound or MakerDAO.

“With interest between 5–10 % p.a., companies can thus access capital 1-3 months earlier and don’t have to wait for invoices to be paid. Since its inception, Centrifuge has provided almost $ 4 million in financing and is used on a daily basis, for example by companies in the logistics sector (Harbor Trade Credit) and in the real estate sector (New Silver),” says Fischer.

As the founder of the Rockaway Blockchain Fund notes, the Centrifuge platform, as a bridge between the world of traditional and decentralized finance, has many additional uses. “Anyone can use Centrifuge to finance even less conventional cash flows such as artists’ revenues from streaming content on Spotify. This is used by Paperchain, for example, which offers investors interest of 7 % p.a. on their capital,” he adds.

Centrifuge wants to use this investment to, among other things, expand its Berlin team, which is why it has created several new positions such as Account Manager, Senior Frontend Engineer, Senior Rust Engineer, and UX Designer.