Bermuda: ADA Innovation Sandbox

Bermuda's InnoFund Incubator is an international program that supports digital asset companies looking for robust, secure foundations.

Penrose Partners advises national governments on blockchain innovation and digital asset adoption and runs InnoFund's programming.

With Bermuda recognized as a globally recognized jurisdiction for international business, the introduction of the island's Digital Asset Business Act 2018 allowed for blockchain & digital asset firms to set themselves up for future success. Bermuda's well established rules for international companies and welcoming blockchain legislature have led to many digital asset firms, large and small alike, choosing Bermuda as their base of operations as they grow. For startups building across the space as well as for protocol foundations themselves, Bermuda is recognized as a premier location to build for the long term.

The InnoFund Innovation Incubator ("i3") is a public-private partnership between the Bermuda Government, the DMZ Incubator and several digital asset partners who are dedicated to growing the blockchain space as a whole. InnoFund has recently graduated its inaugural stealth cohort of companies, who are now set up in the island jurisdiction, expanding their product offering and collaborating with other digital asset firms.

This collaboration is made possible in conjunction with Penrose Partners, a blockchain-centric advisory group that advises governments around the world on emerging technologies while working directly with innovative startups in the blockchain space.  Penrose (https://www.penrosepartners.com/) has a history of successfully driving early-stage companies to success and enabling them to achieve future funding rounds, product refinement and global exposure and partnerships. 

Penrose and InnoFund have built strong relationships with every digital asset company already set up in Bermuda, and are guiding a new cohort of companies through the 6-month incubation program starting in January 2022.

Having established a relationship with the IOHK Foundation/Cardano in early 2021, Penrose seeks to further strengthen the ADA ecosystem by providing startups building on Cardano with introductions to investors/strategic partners, assistance with refining product offering and assisting with company incorporation and immersion in Bermuda.

Through the Fund7 opportunity, Penrose and InnoFund seek to connect relevant Catalyst-funded and other Cardano-related firms with direct access to what they require to grow. In the spirit of ensuring this aligns with the goals of the organization, Penrose aims to achieve the following metrics in the first year of collaboration with Catalyst;

1. 12 Companies having completed the InnoFund Immersion Program that are integrated with the Cardano ecosystem.

2. A minimum of 20 new investors & mentors to be onboarded into the Cardano ecosystem, through direct connections to the companies and through Capital Roadshows held every 6 months in the program.

3. Global access to the program for Cardano-related firms, resulting in applications from no fewer than 20 countries from around the world through appropriate marketing channels.

4. A standard of quality upheld for all Cardano-related applicants such that all applicable companies are able to submit their applications for Digital Asset licenses under the Bermuda Monetary Authority's licensing. 

In terms of timelines, we expect the following to be achieved:

3 Months; The 2022 Program is up and running, with cohort applications fully received and vetted by Penrose and InnoFund. Company incorporation and product refinement is underway, along with relevant firms having started the DMZ's Bootcamp Program for those that are interested (along with other perks detailed by the DMZ).

6 Months; Companies are incorporated, with DABA licenses underway and with Penrose working hand-in-hand with the companies on partnerships, business development, marketing efforts and where relevant, connections made to Penrose's network of partners for international expansion.

12 Months; Full completion of the program with companies now licensed (where appropriate) and registered in Bermuda, expanding local hires and utilizing ADA funding for building on-chain where best suited. Penrose will engage further with IOHK and Cardano to ensure the ecosystem is aware of the advantages of establishing themselves in Bermuda, and looks to streamline the application process for all Catalyst companies in the future.

We request the following budget in order to further enable the incubator accepted companies to build on-chain utilizing these digital assets, to market themselves appropriately through event attendance/sponsorship and to support the companies overall by providing strategic mentoring and guidance where needed for all Catalyst related firms. We welcome the opportunity to answer any further questions.