Cardone backs blockchain company with $4M crypto investment • St Pete Catalyst
Local fintech serial entrepreneur Gary Cardone is breaking into the blockchain space through his latest venture.
Cardone, co-founder and former CEO of Clearwater-based anti-fraud company Chargeback911, recently injected $4 million into Node40, a New York-based company known for its suite of tools that manage blockchain nodes.
“[Last year] in one Saturday afternoon, I moved $3.5 million from five digital institutions to Node40,” Cardone said.
“Two minutes later, the CEO said they received the funds. It cost me $12 to move $3.5 million in cryptocurrency with no issues,” he said, noting that the transaction took place at a time when cryptocurrency lending giant Celsius was experiencing a market downturn and stopped all withdrawals, exchanges and transfers between accounts.
Cardone, who has funded and helped create several companies over three decades, said he will continue to invest in Node40 and other blockchain companies through his new venture capital firm Card1Ventures.
“A lot of entrepreneurs tend to be hyper-focused on one area. I like to find companies that address problems that an entire industry faces, not just one type of business. I’m not an expert on the technology behind blockchain, so I surrounded myself with technologists and started studying the market two and a half years ago,” Cardone said, recalling his initial interest.
“The blockchain market is absolutely staggering. When markets go through a fundamental structural change due to technology or regulation, or in this case both along with the commercialization of products, that’s the kind of environment where you can build businesses that solve problems.”
Behind the deal
Cardone and Node40 CEO Perry Woodin became acquainted last year after Cardone heard that local investors were looking at the company.
He connected with Woodin via LinkedIn, and invited Woodin to visit and stay at the Tierra Verde property. During a two-week period with Woodin staying at Cardone’s home, the duo built a trusting relationship, which led to the completion of a deal.
Cardone promised to funnel $4 million in exchange for control over the commercialization of Node40’s business-to-business model, while Woodin’s team will remain fully focused on creating the technology behind the product.
“I don’t bet on companies. I want to join. I don’t like doing debt like angel investment companies; I would be another number on the board,” Cardone said, adding that he will continue to invest in Node40.
“I’ve created a lot of companies over 35 years and I’ve made a lot of mistakes – underestimating values, not exiting properly and compliance issues. I want to correct these mistakes and bring my commercial knowledge.”
“Their [Card1Ventures] investment and expertise in disruptive technologies will greatly benefit the company’s growth and help us further strengthen our position as a leader in the blockchain infrastructure space,” Woodin said in a prepared statement.
Cardone expects the 40-plus Node40 team to move from New York to Tampa Bay.
“You have Cathie Wood [founder of ARK Invest], Blockspaces, KnowBe4 and FIS which are all based here. This is the place to be,” Cardone said.
Cardone said he can envision Node40 following a similar growth journey to Chargebacks 911, which Cardone co-founded with his ex-wife, Monica Eaton Cardone, who currently runs the company.
