Bitcoin Startup Ideas
Two weeks ago, at Boost VC, we decided to go “Full Bitcoin” and a lot of applications are funneling in the doors! This prompted a lot of different people to ask what types of Bitcoin companies we are looking for. The answer to this falls into four buckets:
- “Repair Mode” bucket
- Companies that are solving a real need in the world TODAY
- And then additionally, block chain companies
- Things we have not thought of
Bitcoin has been an awesome “Toy” for 5 years and during that time, we have the technology stretched to its limits. Bitcoin is overly complicated, it is hard to use, and the security can use an update. These problems in bitcoin are opportunities for companies in the space to solve. This is where the “Repair Mode” bucket falls into place: We want to back any companies that are fixing the holes in the technology of Bitcoin. Some good examples of this are BlockCypher and HashRabbit, bother companies who have already been through Boost. BlockCypher, makes it easy to plug and play and build a Bitcoin company, this helps the usability. HashRabbit builds the software for the bitcoin miners, thus helping the security of the software in bitcoin. There are a lot of opportunities in this category:
- The VeriSign/CloudFlare of Bitcoin
- Monitoring applications for wallets
- Insurance would be an example of filling a big hole
- Some Replacement for 2 factor Authentication
- Block chain search
- Data compression for the block chain data
Where is Bitcoin better than cash?
On the second Bucket, we are looking for companies that are solving a true need in the world. A lot of people are discussing the Bitcoin end game, but in order to get to the “World Domination” end game, Bitcoin needs a use case. When thinking about what use cases will add more value than the current monetary system, I think about what Bitcoin does better that cash, and the answers are:
- Cross -Boarder Transactions
- Micro -Transations
- Store of value for some emerging markets
These 3 things, Bitcoin does better than cash TODAY. It makes it cheaper do do cross-boarder transactions, it makes it possible to do micro-transactions without any middle man taking a cut, and in most countries, they do not have the stability that the United States has in our banking system, and Bitcoin is a leapfrogging technology for those countries as a store of value.
Boost has seen a trend moving in the direction of the block chain. A lot of investors have begun to say, “I’m much more interested in the block chain than bitcoin”, however they are all under the same bracket in our book. The incentives of the miners in the bitcoin ecosystem is dependent on bitcoin, but as long as the incentives work, the block chain is by far the most powerful part of the technology. We have begun to see some incredible ideas pop up in the block chain direction.
- Contracts for Venture investment
- General Contracts in the block chain — Real Estate, Equity, Insurance
- Identity in the block chain
- Sidechain technology
- Data Visualization of the block chain
- Concert tickets issued in the block chain
- Tax Distribution
We are also interested in anything that we have yet to think of. Be creative, find real problems and solve them. We are really excited about supporting the next generation of bitcoin companies! Apply to Boost VC here.