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New Chicago Bitcoin Center sees future in digital currency

The future of digital currency is evolving, and a new bitcoin-focused incubator has launched at 1871 to support startups dedicated to influencing it.

By Amina ElahiBlue Skycontact the reporter

The future of digital currency is evolving, and a new bitcoin-focused incubator launched Friday at 1871 to support startups dedicated to influencing it.

The Chicago Bitcoin Center will work with companies focused on the development of blockchain technologies, which provide a secure and trusted network for transmitting and transferring bitcoin and other forms of value, founder and CEO Matthew Roszak said. Roszak is also founding partner at Chicago-based Tally Capital, a venture capital firm focused on investing in block chain technology and in bitcoin.

The Center counts among its advisers some experienced finance and venture capital leaders, including Don Wilson, founder and CEO of DRW Trading; Andrew Filipowski, founding partner of Tally Capital; Ezra Galston of Chicago Ventures; and Perianne Boring, founder and president of the Washington-based Chamber of Digital Commerce. Filipowski is the Center’s chairman.

Howard Tullman ⇒, CEO of 1871, said the viability of digital currency is increasing. He said 1871 now accepts payments in bitcoin but that “we’ll be rushing to the bank to convert it to dollars,” since some may have concerns about holding payments in digital currency.

Tullman cited Citibank’s revelation this week that it is developing a digital currency called Citicoin as evidence of growth in that sector.

“When you have the biggest banks in the world starting to acknowledge that this is a viable currency and everybody has to be involved in it, we think it’s going to have implications for our companies,” Tullman said. He said the Center is one part of 1871’s fintech offerings, which will include a retail incubator whose launch date is not yet known.

Entrepreneurs who work with the Center will have access to its office space in 1871, as well as mentors and public relations and government affairs services. The first group of companies includes Glidera, which gives merchants a secure way to buy or sell bitcoin, and Red Leaf, which is creating a network of bitcoin ATMs across Chicago.

Roszak said he aims chiefly to connect blockchain entrepreneurs to his network of experience technologists, marketers, advocates, investors and others. These people will help the entrepreneurs navigate the development and regulatory challenges of building a blockchain or bitcoin company, he said.

Tullman said the work of blockchain companies could transcend financial technology.

“The whole blockchain-based technology space is really going to be used beyond currencies pretty soon,” Tullman said. “We think the next thing you’ll hear is cyber security.”

Copyright © 2015, Chicago Tribune

Bitcoin center launched at 1871 in Merchandise Mart

WRITTEN BY MITCH DUDEK POSTED: 07/10/2015, 09:34AM

The Chicago Bitcoin Center was launched Friday. | Getty Images

A portion of office space at 1871 — a hub for digital startups at the Merchandise Mart — will now house entrepreneurs focused on expanding the new field of technology surrounding the digital currency Bitcoin.

The launch of the Chicago Bitcoin Center, described as “an incubator to serve as Chicago’s key resource and center of gravity for blockchain-based technologies,” was set for Friday morning at the Inside Bitcoins Conference at Navy Pier.

“The Chicago Bitcoin Center is open to designers, developers, entrepreneurs, and all those dedicated to building tomorrow’s next chapter of financial technology,” said Matthew Roszak, founder and CEO of the Chicago Bitcoin Center and founding partner of Tally Capital, a Chicago-based venture capital firm.

Funding for the new center was provided by four investors who are placing a bet that the digital currency is the future of the global economy.

The new incubator will cater to innovators who want to explore new ways to use the digital currency and revolutionize the way people send digital assets online.

It will foster entrepreneurs through mentorship by industry leaders. Advisers also will help with public relations and governmental affairs.

“The financial industry is a key vertical that is profoundly affected by technology, and the Chicago Bitcoin Center establishes a leadership position for 1871 and Chicago in this important field,” 1871 CEO Howard A. Tullman said in prepared statement. “We are excited to welcome the Chicago Bitcoin Center and its first cohort of startups to 1871.”

The industry is in its infancy. Bitcoins were invented in 2009. As of Thursday, a single Bitcoin — which can be used as currency at a growing number of retail centers and online merchants — was worth $270.

Many of the world’s largest financial institutions are also exploring how to implement the technology.

Contributing: Becky Schlikerman

Chicago Bitcoin Center Launches at 1871

Chicago Bitcoin Center Launches at 1871

Chicago’s First Bitcoin Incubator Officially Launces at 1871, Welcomes Inaugural Class of Startups Focused on Blockchain-Based Technologies

CHICAGO (INSIDE BITCOINS CONFERENCE) July 10, 2015 — Prominent Chicago entrepreneurs and investors today announced the launch of the Chicago Bitcoin Center, an incubator to serve as Chicago’s key resource and center of gravity for blockchain-based technologies. Opening its doors today at 1871, Chicago’s hub for digital startups, and officially announced at the Inside Bitcoins Conference in Chicago, the Chicago Bitcoin Center will work to foster a new wave of technological innovation on the blockchain. The Chicago Bitcoin Center is dedicated to education, innovation, and development of blockchain-based technologies.

“Chicago has a rich history and DNA in financial technology, and the blockchain has the potential to provide a new, open-source rail for FinTech innovation,” said Matthew Roszak, founder and CEO of the Chicago Bitcoin Center and founding partner of Tally Capital, a Chicago-based venture capital firm focused on blockchain-enabled technologies and currencies. “The Chicago Bitcoin Center is open to designers, developers, entrepreneurs, and all those dedicated to building tomorrow’s next chapter of financial technology.”

The launch of the Chicago Bitcoin Center at 1871 provides a number of resources and opportunities for startups focused on blockchain-based technologies.  In addition to office space in the Chicago Bitcoin Center, incubator companies will have access to mentorship by leading Bitcoin entrepreneurs, technologists and investors. The Chicago Bitcoin Center also provides a full suite of public relations and government affairs services to member companies. This incubator is one of many efforts being undertaken at 1871 to foster innovation around financial technology.

“The financial industry is a key vertical that is profoundly affected by technology, and the Chicago Bitcoin Center establishes a leadership position for 1871 and Chicago in this important field,” said 1871 CEO Howard A. Tullman. “We are excited to welcome the Chicago Bitcoin Center and its first cohort of startups to 1871.”

In conjunction with the launch of the Chicago Bitcoin Center, 1871 has announced that it will now be able to accept payment in bitcoin. Additionally, members will be invited to pay their rent in bitcoin, should they so desire. This is one of several steps 1871 will be taking to promote the use and acceptance of bitcoin.

“At the Chicago Bitcoin Center, I look forward to working with FinTech entrepreneurs to build on the growing momentum in the FinTech industry, while drawing on the city's deep legacy of financial innovation," said Jonathan Solomon, who serves as the first executive director of the Chicago Bitcoin Center.

The Chicago Bitcoin Center’s Board of Advisors includes: Andrew Filipowski, chairman of the Chicago Bitcoin Center and founding partner of Tally Capital; Don Wilson, founder and CEO of DRW Trading; Jeff Garzik, bitcoin core developer and founder of Dunvegan Space Systems; David Johnston, managing partner of Decentralized Applications Venture Fund; Perianne Boring, founder and president of the Chamber of Digital Commerce; Josh Metnick, CEO of Navier; Luke Sully, director of advisory services at PriceWaterhouseCoopers; and Ezra Galston, venture capitalist at Chicago Ventures.

The Chicago Bitcoin Center’s inaugural incubator companies include: Bloq, a blockchain technology company; Glidera, a digital currency merchant services provider; Red Leaf, a bitcoin ATM operator; and OasisCoin, a bitcoin remittance provider.

About the Chicago Bitcoin Center

Leveraging Chicago's rich history and DNA in financial technology, the Chicago Bitcoin Center is an incubator focused on blockchain-enabled technologies and provides a platform for education, innovation and development. The Chicago Bitcoin Center is sponsored by a group of Chicago-based technology entrepreneurs and investors, and is located at 1871 Chicago. For more information visit: www.chicagobitcoin.com.

About 1871

1871 is the home of more than 325 early-stage, high-growth digital startups. Located in The Merchandise Mart, this 75,000-square-foot facility is also the headquarters of nationally recognized accelerators, Techstars Chicago and Impact Engine; half a dozen industry-specific incubators in key areas such as real estate, education technology, food and financial technology; several emerging tech talent schools (Flatiron, The Fullbridge Program, Designation and the Startup Institute); and the state's leading technology advocate, the Illinois Science and Technology Coalition. It is the second home to Chicago-based VCs Pritzker Group Venture Capital, MATH Venture Partners, Hyde Park Angels, OCA Ventures, OurCrowd and Chicago Ventures, as well as satellite offices for Northwestern University, University of Illinois, University of Chicago, Loyola University Chicago, Illinois Institute of Technology, and DeVry. 1871 has fast become recognized as the hub for the city’s entrepreneurial/technology ecosystem and has been featured in TechCrunch, Wall Street Journal, The New York Times, Chicago Tribune and Crain’s Chicago Business, among other top media. 1871 is the flagship project of the Chicagoland Entrepreneurial Center.