# Intelligent investment in digital transformation: Driving change from the grassroots Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-05-31 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: R3's Jed Talvacchia on Accelerating Digital Transformation Meta Description: Explore how R3, led by Jed Talvacchia, is investing in cutting-edge technology start-ups to drive innovation and revolutionise industries with their Corda URL: https://financedigest.com/intelligent-investment-in-digital-transformation-driving-change-from-the-grassrootshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/investment-in-digital-transformation-1736838304737-compressed.jpg) _By **Jed Talvacchia,** Head of Corporate Development_ _Backed by the world’s leading banks, R3 is focussed on delivering technology to accelerate digital industry transformation._ _The firm’s development fund has committed millions in funding to a range of start-up technology firms building on their Corda platform._ _Head of corporate development, Jed Talvacchia, talks through the firm’s investment approach and ethos and why [digital transformation](https://www.financedigest.com/world-class-finance-digital-transformation-and-analytics-based-decision-making-among-key-imperatives-for-creating-finance-agility.html "World-Class Finance: Digital Transformation and Analytics-Based Decision Making Among Key Imperatives for Creating Finance Agility") is accelerating_ This is an exciting time in [technology investment](https://www.financedigest.com/why-businesses-must-invest-in-cloud-technology-now.html "Why Businesses Must Invest in Cloud Technology Now"). Capital has been pouring into the [enterprise blockchain](https://www.financedigest.com/blockchain-company-aidtech-secures-investment-from-enterprise-ireland-and-sginnovate.html "Blockchain Company, AID:Tech Secures Investment from Enterprise Ireland and SGInnovate ") space alone at an unprecedented rate throughout 2021. Venture capital investment in cryptocurrency and blockchain firms hit a record USD 3 billion in Q1 2021 and investors continue to take advantage of the central role this technology is playing in the [digital transformation of the business world](https://www.financedigest.com/digital-transformation-for-the-world-of-finance-the-rise-in-collaboration-tools-and-saas-applications.html "Digital transformation for the world of finance: The rise in collaboration tools and SaaS applications "). The sector is undoubtedly buoyed by a pandemic that forced all [businesses to re-think outdated ways of working—and 2021 is the year that firms are putting their digital](https://www.financedigest.com/3-reasons-why-businesses-get-stuck-at-the-starting-gate-of-digital-transformation.html "3 Reasons Why Businesses Get Stuck At The Starting Gate Of Digital Transformation") strategies into action. Clearly, investors are taking note. The [Fund’s team has been quietly deploying since 2019 and are now thrilled to welcome some of venture industry’s](https://www.financedigest.com/how-solvency-ii-transformed-itself-the-fund-industry-and-regulation.html "How Solvency II transformed itself, the fund industry and regulation") biggest names as co-investors. Interest has been strong in the [blockchain space since the technology](https://www.financedigest.com/how-to-create-a-more-efficient-transparent-and-trusted-supply-chain-for-the-gold-jewellery-industry-using-blockchain-technology.html "How to create a more efficient, transparent and trusted supply chain for the gold jewellery industry using blockchain technology") emerged for enterprise usage around 2015. In 2017, we completed one of the largest ever [Series A fundraising rounds](https://www.financedigest.com/optable-closes-20-million-series-a-financing-broadens-investor-syndicate-in-new-round.html "Optable Closes Million Series A Financing, Broadens Investor Syndicate in New Round") for a fintech company, backed by the likes of Intel, HSBC, Bank of America, Citi and Barclays, and have continued to raise significant capital since. Through the Fund, we have been deploying capital back into our ecosystem. These investments have been early stage, but the companies are not merely experimenting—they are rolling out mission-critical solutions that promise to materially disrupt their economic sectors, from capital markets to healthcare and from green energy to [digital advertising](https://www.financedigest.com/miq-partners-with-seenthis-to-advance-sustainability-in-digital-advertising.html "MiQ Partners with SeenThis to Advance Sustainability in Digital Advertising"). ![Jed Talvacchia](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/jed-headshot-450x600-1736838304754-compressed.jpg) Jed Talvacchia When we consider that worldwide [spending on blockchain solutions was USD 1.5 billion in 2018 and is now forecast](https://www.financedigest.com/paypals-spending-warning-casts-pall-over-upbeat-forecast.html "PayPal’s spending warning casts pall over upbeat forecast") to reach a staggering USD 11.7 billion by 2022, we believe the ROI for investors such as the Fund is clear. But alongside the work being done by industry leaders like R3 and its peers, [innovative start-ups are the drivers of this technology’s](https://www.financedigest.com/research-and-technological-innovations-to-bolster-developments-in-polycarbonate-resins-market.html "Research and Technological Innovations to Bolster Developments in Polycarbonate Resins Market") adoption. Their creativity, ingenuity, and diligent [development are proving early adopters](https://www.financedigest.com/automotive-hmi-system-market-recent-industry-developments-and-growth-strategies-adopted-by-players.html "Automotive HMI System Market: Recent Industry Developments and Growth Strategies Adopted by Players") (and investors) right. Now, outside investment can accelerate the progress of the industry as a whole, from the bottom up. While many firms benefit from their pinpoint focus and agility, the [business climate of the last 12 months has still proven extremely challenging for most start-ups](https://www.financedigest.com/apple-hostshigh-tech-start-ups-from-worlds-number-one-university-business-incubator.html "Apple hostshigh-tech start-ups from world’s number one university business incubator"). Forward-thinking investors realise digital technologies will play a central role in helping [businesses evolve and emerge from the current crisis](https://www.financedigest.com/europe-burns-cash-to-help-businesses-in-deepening-energy-crisis.html "Europe burns cash to help businesses in deepening energy crisis"). We launched the Fund in 2019 to support the firms helping us to deliver on our combined [mission to establish Corda as the new platform for global](https://www.financedigest.com/spacex-rocket-sends-first-global-water-survey-mission-into-orbit.html "SpaceX rocket sends first global water survey mission into orbit") commerce. We are keenly aware that Corda’s strength is derived from its community, which includes a diverse range of start-ups from a range of industries. We see app developers in insurance, capital markets, [supply chain finance](https://www.financedigest.com/5-steps-to-successful-supply-chain-finance.html "5 Steps to successful supply chain finance"), payment messaging and many others, all building and deploying solutions for customers across the globe. Now with the launch of Conclave, the Fund has expanded its [investment thesis to also include start-ups](https://www.financedigest.com/large-investment-success-for-basingstoke-cybersecurity-start-up.html "Large investment success for Basingstoke cybersecurity start-up") building with confidential computing software. We are very proud to report the significant growth and progress the [Fund’s portfolio companies have shown in both their product and commercial development](https://www.financedigest.com/plastic-antibody-developer-strengthens-board-following-further-investment-from-mercia-fund-management.html "“Plastic antibody” developer strengthens board following further investment from Mercia Fund Management"). In Q3 and Q4 of 2020, during the height of COVID-related economic turmoil, nearly a third of the [Fund’s portfolio companies marked up their valuation through either equity](https://www.financedigest.com/norway-wealth-fund-to-consider-investing-in-unlisted-equities.html "Norway wealth fund to consider investing in unlisted equities") or convertible loan note fundraises. The portfolio valuation is now at a historic high-water mark. This is no small feat in the unprecedented operating environment in which we now operate. As of March 2021, the Fund had built a network of more than 75 distinct co-investors, routinely [sharing deal](https://www.financedigest.com/greeces-aegean-airlines-in-code-sharing-deal-with-emirates.html "Greece’s Aegean Airlines in code sharing deal with Emirates") flow and driving capital into the Corda ecosystem. To date, total paid-in-capital across the Fund portfolio amounts to USD 90mm+. Our operating thesis is to help sustain and support Corda start-ups as they [navigate the current economic](https://www.financedigest.com/why-a-liberated-cfo-and-fintech-solution-are-a-dream-partnership-for-navigating-economic-uncertainty.html "Why a liberated CFO and fintech solution are a dream partnership for navigating economic uncertainty") climate. Of course, this in turn maintains Corda and Conclave’s unrivaled traction in the enterprise software space. We are excited to see so many of these companies going from strength to strength, to the [benefit of the blockchain industry](https://www.financedigest.com/industries-with-the-most-workplace-accidents-and-workers-comp-benefits.html "Industries with the Most Workplace Accidents and Workers Comp Benefits") as a whole. After all, a [rising tide lifts all boats—and it’s great to see](https://www.financedigest.com/ecb-governors-see-rising-risk-of-rate-hitting-2-to-curb-inflation-sources.html "ECB governors see rising risk of rate hitting 2% to curb inflation – sources") so many of these “boats” choosing Corda. We look forward to seeing the Fund’s portfolio firms deploying many more [innovative digital enterprise solutions](https://www.financedigest.com/42-of-retailers-say-payment-over-time-solutions-are-very-important-to-ensuring-future-digital-innovation.html "42% of retailers say payment-over-time solutions are ‘very important’ to ensuring future digital innovation") in the coming months and to many more investors joining us in supporting that growth. The [fund has now reached the milestone of USD 10 million in capital](https://www.financedigest.com/galois-capital-flagship-fund-to-close-after-ftx-losses.html "Galois Capital flagship fund to close after FTX losses") deployed, across over 30 investments in more than 20 of the most promising early stage blockchain and confidential computing companies. This achievement would not have been possible without the dedication and commitment of our team. They’ve spent many late nights and early mornings over the last two years working to find, structure, and execute [top quality investments](https://www.financedigest.com/top-5-investment-trends-to-watch-this-summer.html "Top 5 Investment Trends to Watch this Summer"). They’ve also spent countless hours with our portfolio companies, helping to support them with their fundraising, their go-to-market strategies, and their technical deployment, developing deep, trusting relationships that I believe are at the [core](https://www.financedigest.com/de-surinaamsche-bank-expands-relationship-with-fiserv-to-upgrade-core-banking-platform-and-add-new-digital-banking-capabilities.html "De Surinaamsche Bank Expands Relationship with Fiserv to Upgrade Core Banking Platform and Add New Digital Banking Capabilities") of mutually beneficial investor-investee relationships. I must also express gratitude for our many committed R3 [colleagues that support](https://www.financedigest.com/a-sensitive-guide-to-supporting-your-female-colleagues-in-the-workplace.html "A sensitive guide to supporting your female colleagues in the workplace") the Fund’s deal sourcing, diligence activities, and portfolio company assistance. Their passion for growing Corda’s ecosystem is real and their [work with the Fund has been essential](https://www.financedigest.com/working-with-banks-essential-tips-for-fintechstartups.html "Working with banks – essential tips for fintechstartups"). The Fund is truly a reflection and product of all of R3. I’m also grateful to the entrepreneurs and visionaries that chose to work with R3 and the Fund. Choosing a platform is one of the most consequential decisions blockchain entrepreneurs make. When companies select Corda, we take that trust seriously. We value executives’ confidence in our software, and we work hard to confirm that choice with every subsequent release of Corda R3 makes and every [investment the Fund executes](https://www.financedigest.com/french-watchdog-fines-h2o-asset-management-executives-over-tennor-investments.html "French watchdog fines H2O Asset Management, executives over Tennor investments"). --- This blog is powered by Superblog. 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