Blockchain Accepts $30 Million In VC Funding
The latest round of funding in the Bitcoin world says a lot about where the virtual currency is going and the untapped potential. Blockchain is considered by many the world’s most popular web based bitcoin wallet with over 2 million users and a payment volume of $21 billion.
What makes them so unique is that until now they have been self-sufficient and have not needed to take on VC funding. Founded in 2011 they have run a small and efficient team of 20 staff which has relied on organic growth alone to foster their brand.
Their latest decision to raise over $30 million in funding from Lightspeed Venture Partners, Wicklow Capital and others is remarkable as until now they have not engaged in any marketing. Another point to consider is that some of the new investors include the likes of Richard Branson which is another indicator of just how attractive Bitcoin is to entrepreneurs looking to become pioneers in a still largely unexploited market.
President of Blockchain Peter Smith commented don the new move,” We are going to scale our product engineering team, we are going to build new features. And for the first time ever, we are going to spend money on marketing.”
Blockchain is facing increasing pressure from their competitors like BitPay and Coinbase who also raised VC funds recently. Smith went onto explain that Blockchain were looking into VC for quite a while,” This time we were sharing a vision and it’s not just cash. We found partners that we were comfortable with, and were adding value,”
Blockchain’s claim to fame is that they handle bitcoins differently from their competitors in that everything is decentralized. They don’t actually hold the Bitcoins which makes then immune to hackers who in the past have led to major Bitcoin exchanges like Mt. Gox collapsing.