First close on 10,000 BTC debut fund

BitAngels closes on its first structured fund, called BitAngels Fund I, with 10,000 bitcoins (value: $4.5m) available to companies that are developing distributed applications built on top of the blockchain. Michael Terpin, a founder of BitAngels, calls this “Bitcoin 2.0.”  BitAngels wants to deploy the money in 15 to 20 companies, and would like to invest the fund within two years. The fund charges a 2 percent management fee and 20 percent carried interest.

Terpin: Some of the bitcoin 2.0 applications that have been discussed include using the block chain to regulate escrow or realty sales or eventually to have a stock market.