Despite the fall in crypto market prices, new investors still opt for the blockchain space. One of such investors is Recruit Holdings, a Japanese internet giant. This $45 billion worth company is a popular name in Japanese digital space. However, it came into limelight in the U.S last year with its $1.2 billion acquisition of Glassdoor.
Blockchain Technology Gets Major Investment
Recently, Recruit revealed that it launched a blockchain fund of $25 million. The fund, which was closed in November 2018, is based in Singapore. Its existence was made public following the announcement of the company’s maiden project in Beam. Previously, Recruit has expressed its intention to provide a crypto fund.
Last year, the company through Recruit Strategic Partners (RSP), its central corporate fund, made equity investments in blockchain firms. Besides being the company’s sixth, the recent RSP fund is $100 million. SVP Youngrok Kim, who works with both the new and the RSP fund, granted an interview in Singapore in an event where Recruit made the equity investment deal.
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Kim disclosed that Recruit will use the blockchain for other deals in addition to equity and tokens. In a recent phone interview, he pointed out that the company’s transactions weren’t as flexible as intended when it has only the equity fund. The company couldn’t buy assets and tokens in the past. However, with both the RSP and crypto fund, it can make more deals. Kim revealed that Recruit will keep both vehicles of investment.
According to Kim, operating a token-based fund will be beneficial to the company. Despite the fall in the number of ICOs, he confirms that Recruit is positive about the crypto fund. Kim revealed that the company still has a good number of token and equity deal flow. However, many token sales are now conducted privately for professionals and full-time investors rather than publicly for anyone interested. Still, Recruit believes that blockchain and its decentralized technology is the way forward.
Besides tokens and assets, the crypto fund will aid investment in other funds such as an LP. This strategy will help the company to meet it business goals. Kim confirmed that Recruit’s investment area is broad. He disclosed that the company is still conducting research on blockchain and its potentials. The findings of this study are expected to give more understanding of this emerging technology. They will also help the investments on the application of blockchain technology.
The company’s official claims that the digital giant already has some upcoming deals. However, Recruit will still find other companies that will work with it on the crypto investments. Considering the numerous tasks involved, Kim affirmed that the crypto fund will be spent judiciously.
The Japanese digital giant, Recruit, was established in 1960. It has about 45,000 employees in 60 countries across the globe and worth over $45 billion on Tokyo Stock Exchange listings. Recruit’s major operations are HR and recruitment. Besides, it provides services in other segments such as travel, real estate, and dining.
Despite its history of acquisitions, Kim doubts if Recruit will acquire any blockchain company in which the crypto fund is invested. The blockchain is an emerging technology but Recruit is determined to track its development and tap into its potentials. In a similar development, Line, another Japanese company, also launched $10 million crypto in 2018.
What do you think about this $25 million cryptocurrency fund for the promotion of blockchain technology? Share your thoughts.