Page 79 - Cyber Defense eMagazine April 2023

UNICEF’s Venture Fund

The UNICEF Venture Fund welcomed eight fresh firms in 2021 that are creating blockchain-based, open-
source solutions for enhanced financial inclusion. This was the debut cohort with over 50% of the firms
being created or headed by women, the first cohort to extend the Fund's investment portfolio to Rwanda,
and even the first cohort to acquire both USD and cryptocurrency in initial financing.

To connect the businesses to UNICEF's activities in their countries throughout the investment term,
UNICEF made use of its extensive network. As part of the professional assistance program, UNICEF
also offered technical as well as strategic support. Just two years have passed since they started working
with this cohort, and in that time, the companies have identified strategic methods to support and expand
their efforts, including methods for UNICEF to have access to the created digital infrastructure. Each firm
in this cohort was chosen by UNICEF solely because it is paving the way for financial inclusion but also
because it offers a solution to problems that have been identified as cross-cutting by UNICEF's program
divisions, such as growing access to resources, community engagement, accountability, and the
effectiveness of funding flows.

For instance, another Portfolio Company was bought in 2022, proving sustainability as well as scalability.
IDT Corporation, a leading supplier of cloud communications, fintech, and traditional communications
services, purchased Leaf Global Fintech, which created a virtual bank for refugees as well as vulnerable
groups to enable asset storage and exchange across borders even without the requirement for a
smartphone. This acquisition will enable Leaf to grow its effect and assist even more migrants, merchants,
and unbanked individuals.

Leaf expanded its solution across three African countries during its period with the Fund, initiated an NFT
collection of artwork created by refugees, and is currently pilot-testing a digital microlending platform. As
a result, they influenced over 40,000 beneficiaries and increased direct financial services access for
7,000 refugees and members of vulnerable populations. As a result, several governmental and non-
governmental organizations are eager to celebrate their continued growth with such blockchain start-ups
and VC investment.

Conclusion

The venture capital sector may even be drastically altered by blockchain technology in a variety of ways.
For starters, it could be simpler for entrepreneurs to raise capital without using the conventional VC
procedure. The amount of money VCs spend in businesses and the fees they charge may decline as a
result of this.

The emergence of token sales, which are a type of cryptocurrency-based crowdfunding, might potentially
have an impact on VCs. Startups can generate money through token sales by offering digital tokens that
can be utilized to access the company's goods or services. This could make it possible for entrepreneurs
to completely avoid VCs.

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