Blockchain startup companies have quickly established themselves as a good investment for large businesses, organizations, and colleges, and Switzerland has become one of the most popular areas for these technology companies to get underway. That appears to be the case for B3i, who announced on March 25 that last month that they had raised $22 million, giving them a total capital investment of $22 million since they began operations in March 2018.
The startup company is owned in part by some of the largest insurance companies in the world. Last March, the company raised $6.3 million at the time that they incorporated. While specifics have not been laid out, there are reports being circulated that the target goal is $200 million, although an exact deadline to reach that has not been established either or at least provided.
Earlier this year there was a reshuffling of positions at the top of B3i. Two of the original board members stepped down, leading to a reshuffling and replacement among the nine board members. Theo Bachmann, the managing director at Swiss Re, became the new director. He replaced Gerhard Lohmann, who had also come from Swiss Re.
The investment comes at a time when Switzerland is establishing itself as one of the premier locations for tech companies to set up business. In 2018 alone, the country added 365 fintech businesses, an increase of over 62% from the previous year.
Since the start of 2017, the Swiss government has made it their priority to improve the climate for tech companies to set up shop. While Germany has been bogged down in bureaucracy, Switzerland has opened up its doors and its wallet, not only decreasing regulations but providing capital investment for startup companies.
This has led many larger sized corporations to get involved with the startups. B3i is such a case.
Of its principal investors, three of the largest insurance companies in Switzerland are involved. The founding members of the company include Aegon, Allianz and Munich Re, Swiss Re, Tokio Marine, XL Catlin, and Zurich.
The goal of B3i when it started was to create ledgers that would streamline the processes and claim handling using blockchain technology. Last year, the company switched from using Hyperledger Fabric to R3 Corda’s platform. This quickly led to another startup consortium founded by insurance companies to follow suit.
Of the $16 million raised, $8.3 million, about $8.27 million, was given directly in the form of cash. The rest will be supplied as converted debt according to a filing provided by the Swiss Commercial Register.
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