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Merchant Bank Backs Blockchain Startup

Atlantic Merchant Capital, a private merchant bank headquartered in Tampa, Florida, in conjunction with Celeridem Capital Management have invested an undisclosed amount into Symbiont, a startup developing blockchain technologies for Wall Street use.

The way that Blockchain technology is transforming how financial markets operate has been a topic of many financial publications as of late, but Symbiont appears to be ahead of the curve. Some of the company’s founders were originally behind CounterParty, one of the earliest attempts to bring financial market functionality to the blockchain.

They were also part of the much anticipated Medici, an initiative by the online retailer OverStock to build an alternative stock market on top of the blockchain, that does away with many of today’s financial market problems. After several months with the project, the founders of CounterParty left to make their own startup, Symbiont, and also brought onboard the founders of MathMoney, another firm that has been trying to bring peer-to-peer digital currencies to Wall Street.

"We are very excited to have the opportunity to back Mark Smith and his executive team in this exciting financial technology venture. We think the company’s technology suite and IP will provide the industry with valuable solutions across a wide spectrum of assets.  Mark has assembled a world-class team and board to help him execute his plan.  We appreciate the opportunity to participate in this company at such an early stage."
— – Allan Martin, Atlantic Merchant Capital Investors CEO

Atlantic Merchant Capital’s portfolio comprises of businesses mainly in the financial services industry located in its home state of Florida, but the firm has invested in businesses from all over the United States and in many industries. Currently, Atlantic has invested in 20 companies, and plans to invest in 100 in 10 years. Symbiont is its first investment in a blockchain or Bitcoin company.

"The team at Symbiont is enthusiastic about our new capital partnership with Celeridem and Atlantic," added Mark Smith, former founder of MathMoney and CEO of Symbiont.  "The capital they and other investors have provided will allow us to deliver production technology and clear the way to a Series A round later this year.”

“ We are also excited about the opportunity to work with Shiv Govindan and Jeff Hunt [principal at Atlantic]. They bring more than capital to the table."
— – Mark Smith, Symbiont CEO

Symbiont already raised $1.5 million earlier this year. The seed funding round raised capital from premier investors including Duncan Niederauer, former CEO of NYSE Euronext; Matt Andresen, founder of the Island ECN and Trading Head at Citadel; Scott Carmilani, Chairman and CEO of Allied World Assurance Company; and the Celeridem FinTech Fund.

"Symbiont is bridging the gap between Wall Street and the emerging blockchain ecosystem. It’s an exciting, timely and much-needed development for the long-term health of the markets."
— – Duncan Niederauer, NYSE Euronext Former CEO

With the latest investment, the company’s board consists of early investors Smith and Niederauer, alongside Symbiont’s president Robby Dermody and Neil DeSena, Founder of Sena Hill Partners and Global Head of REDI Products at Goldman Sachs.

What differentiates Symbiont from a growing number of competitors is that the startup is looking to work with the existing financial system, rather than replace them. This was one of the reasons the founders of Counterparty left Medici, which was trying to replace the whole stock market. Currently they are working off of the Bitcoin blockchain and using several technologies developed by CounterParty, but they are also working on distributed ledgers that don’t use a digital currency to secure its network.

For the time being Symbiont is using bitcoin blockchain technologies because they are the most tested and reviewed out of the technologies in this very new field, a very important thing considering that real money and assets will be traded on these systems. But the startup also recognises that the Bitcoin system has drawbacks, most pointedly that financial institutions are uncomfortable using it, Symbiont is therefore developing several non-digital currency ledgers. According to the company, non-digital currency and bitcoin ledgers will both have a place in the emerging industry with each offering different advantages.

"This is a once-in-a-generation opportunity to leverage this previously unimaginable technology for the greater good of investors, financial institutions, and global financial markets," said Smith. "The blockchain not only has the potential to democratize markets but to drive down the cost of doing business across all sectors."


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