BitAngels to push for investment in Bitcoin startups

Over 60 investors have come together to launch BitAngels, the first multi-city angel investment network and incubator designed to encourage support of Bitcoin startups.

The investment firm was set up by David A. Johnston, founder of Engine.co, Michael Terpin, founder of SocialRadius and Martketwire, and angel investor Sam Onat Yilmaz, with the aim of promoting entrepreneurship in the cryptocurrency market.

The firm has amassed an initial fund of $6.7 million (£4.4 million), according to TechCrunch, which will be invested at a rate of around $20,000 (£13,000) per startup. Support and mentoring will also be offered from its offices in Austin, San Francisco and New York.

All of the investors have amassed Bitcoins through mining or buying them early on, and they believe in the future of the digital currency enough that they are willing to pump money into companies attempting to expand the reach and use of Bitcoins, and make a tidy profit in the process.

Bitcoins have been around since 2008 and are continuing to catch the attention of investors, including the Winklevoss twins who claimed a stake in Facebook.

However, the volatile nature of the currency, which has been subjected to numerous hacks and thefts, makes it debatable if it will ever become a mainstream alternative to standard online purchasing options.