BlockFi Raises $18.3M Series A Led by Valar Ventures
NEW YORK, August 6, 2019 (Newswire.com) - BlockFi, the leading wealth management solution for crypto investors, announced today that it has raised $18.3 million in Series A funding led by Valar Ventures with participation from Winklevoss Capital, Galaxy Digital, ConsenSys Ventures, Akuna Capital, Avon Ventures, Susquehanna, CMT Digital, Morgan Creek and PJC. The capital will be used to add new products to BlockFi's existing platform, which includes interest-earning accounts for Bitcoin and crypto-backed USD loans.
Valar, a New York-based and fintech-focused VC firm, led the funding round. Valar has previously led Series A financings in several prominent fintech companies including Transferwise, N26, Qonto and Petal. Notably, BlockFi is Valar's first investment that directly touches the cryptocurrency sector.
"Outside of all the hype and volatility of the crypto trading markets, there are teams, like BlockFi, that are building the infrastructure to allow investing in digital assets to become mainstream. We are excited to help BlockFi build robust 'picks and shovels' for this emerging asset class," said James Fitzgerald, general partner at Valar Ventures.
BlockFi was the first company to receive institutional funding for crypto-backed USD loans, in the form of a $50M lending facility from Galaxy Digital. The company's second product enabled crypto investors to earn interest on their assets and participate in the rapidly growing crypto-lending market.
"We're excited to continue development at BlockFi that will bring us closer to our vision of a world where access to wealth-building financial products and services are not limited by geography or an individual's net worth. Our talented team and strategic backers will continue to drive the crypto financial services infrastructure forward to facilitate adoption and value creation in the crypto ecosystem," stated BlockFi CEO & Founder Zac Prince.
"For the first time in history, we are able to leverage the borderless nature of crypto to enhance the value, speed and reach of financial products. We differentiated ourselves since inception by focusing on building a compliance-focused platform that aims to bridge blockchain technology with the existing financial systems of the world," added BlockFi Co-Founder Flori Marquez.
BlockFi offers financial products that enable cryptocurrency holders to put their crypto to work. The company services customers worldwide, including 47 U.S. states, with interest-earning accounts and low-cost USD loans backed by crypto. BlockFi is backed by leading institutional investors and operates with a focus on compliance with US laws and regulations. Learn more at BlockFi.com.
All customer crypto balances are stored in a custodial account with Gemini. Digital currency is not legal tender, is not backed by the government, and interest accounts are not subject to FDIC or SIPC protections.
Deanna Sheward, Director of Marketing