Bitcoin rigid – s $40M round signals confidence in digital currency, American Banker

Bitcoin rock-hard’s $40M round signals confidence in digital currency

Blockchain, a long-running digital currency startup that offers one of the world’s most popular bitcoin wallets, has raised $40 million.

The funds will be used to make "big, bold bets in research and development," release fresh products and expand further internationally, the company’s CEO, Peter Smith, said in a blog post on Thursday.

Led by Lakestar and GV (formerly Google Ventures), the Series B funding round emerges to be a sign of renewed interest in digital currency among investors. A bull market this spring witnessed bitcoin triple in price from about $1,000 to just over $Trio,000, while the total cryptocurrency market has enhanced by more than six times since the beginning of the year.

Use of proceeds

Founded in 2011, Blockchain survived a period marked by scandals and shutdowns for bitcoin companies to become one of the market leaders. More than fourteen million Blockchain wallets have been created, and the startup’s technology has powered more than one hundred million transactions, according to its website.

The company’s name refers to the groundbreaking technology underlying bitcoin and other cryptocurrencies. But to be clear, Blockchain is a bitcoin startup focused on digital currency applications, not a company building enterprise blockchain software.

Blockchain began as a one-man software project run by Ben Reeves, a British programmer. He single-handedly built a website and created the very first versions of Blockchain’s digital wallet app for iPhone and Android. Reeves received early funding from Roger Ver, a libertarian angel investor who has since become a controversial figure in the bitcoin community for his support of Bitcoin Unlimited, one of the proposals to scale the network.

But the company soon grew beyond what Reeves could treat on his own. In 2013, Ver recruited Nic Cary, an American who had been a fraternity brother of Erik Voorhees — another longtime bitcoin entrepreneur who is today the CEO of the cryptocurrency exchange service ShapeShift — to be Blockchain’s CEO.

That was when Blockchain indeed began to take off. It acquired the bitcoin information app ZeroBlock — the very first merger or acquisition in the nascent industry — and soon became the world’s leading bitcoin wallet service.

By May 2014, Blockchain had twenty employees. Five months later, the startup raised a $30.Five million Series A, the largest single round of funding for a digital currency company at that time. The company moved its headquarters to London, and Cary passed over the top job to Smith, assuming the role of president.

Reached by email on Thursday, Cary said it had been a "indeed titillating day."

Smith said in his blog post that Blockchain’s fresh funding round represents "the most substantial investment in the fintech space [in Europe] since Brexit." And while other blockchain startups have raised larger rounds, Blockchain’s $40 million is "the larger Series B of any digital currency company to date," Smith added.

Nokota Management and Barry Silbert’s Digital Currency Group made their very first investments in Blockchain alongside Lakestar and GV. Existing Blockchain investors Lightspeed Venture Playmates, Mosaic Ventures, Cherry, Prudence Holdings and Richard Branson also joined the fresh funding round.

Now that Blockchain has $40 million of fresh "rocket fuel" in its tanks, Smith said, "you can expect fresh products aimed at permitting anyone to transact, save or hedge digital assets with greater speed, efficiency and control."

Bitcoin rock-hard – s $40M round signals confidence in digital currency, American Banker

Bitcoin hard’s $40M round signals confidence in digital currency

Blockchain, a long-running digital currency startup that offers one of the world’s most popular bitcoin wallets, has raised $40 million.

The funds will be used to make "big, bold bets in research and development," release fresh products and expand further internationally, the company’s CEO, Peter Smith, said in a blog post on Thursday.

Led by Lakestar and GV (formerly Google Ventures), the Series B funding round emerges to be a sign of renewed interest in digital currency among investors. A bull market this spring eyed bitcoin triple in price from about $1,000 to just over $Trio,000, while the total cryptocurrency market has enlargened by more than six times since the beginning of the year.

Use of proceeds

Founded in 2011, Blockchain survived a period marked by scandals and shutdowns for bitcoin companies to become one of the market leaders. More than fourteen million Blockchain wallets have been created, and the startup’s technology has powered more than one hundred million transactions, according to its website.

The company’s name refers to the groundbreaking technology underlying bitcoin and other cryptocurrencies. But to be clear, Blockchain is a bitcoin startup focused on digital currency applications, not a company building enterprise blockchain software.

Blockchain embarked as a one-man software project run by Ben Reeves, a British programmer. He single-handedly built a website and created the very first versions of Blockchain’s digital wallet app for iPhone and Android. Reeves received early funding from Roger Ver, a libertarian angel investor who has since become a controversial figure in the bitcoin community for his support of Bitcoin Unlimited, one of the proposals to scale the network.

But the company soon grew beyond what Reeves could treat on his own. In 2013, Ver recruited Nic Cary, an American who had been a fraternity brother of Erik Voorhees — another longtime bitcoin entrepreneur who is today the CEO of the cryptocurrency exchange service ShapeShift — to be Blockchain’s CEO.

That was when Blockchain indeed began to take off. It acquired the bitcoin information app ZeroBlock — the very first merger or acquisition in the nascent industry — and soon became the world’s leading bitcoin wallet service.

By May 2014, Blockchain had twenty employees. Five months later, the startup raised a $30.Five million Series A, the largest single round of funding for a digital currency company at that time. The company moved its headquarters to London, and Cary transferred over the top job to Smith, assuming the role of president.

Reached by email on Thursday, Cary said it had been a "indeed arousing day."

Smith said in his blog post that Blockchain’s fresh funding round represents "the most substantial investment in the fintech space [in Europe] since Brexit." And while other blockchain startups have raised larger rounds, Blockchain’s $40 million is "the larger Series B of any digital currency company to date," Smith added.

Nokota Management and Barry Silbert’s Digital Currency Group made their very first investments in Blockchain alongside Lakestar and GV. Existing Blockchain investors Lightspeed Venture Playmates, Mosaic Ventures, Cherry, Prudence Holdings and Richard Branson also joined the fresh funding round.

Now that Blockchain has $40 million of fresh "rocket fuel" in its tanks, Smith said, "you can expect fresh products aimed at permitting anyone to transact, save or hedge digital assets with greater speed, efficiency and control."

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