BlockFi lands a $350M Series D at a $3B valuation for its fast-growing crypto-lending platform – TechCrunch

If there is any doubt about the cryptocurrency boom, we need to look at the rapid growth of certain companies in this area.

One such company BlockFi,this Today, it announced that it has completed $ 350 million in Series D funding, worth $ 3 billion.The news itself is certainly getting a lot of attention, but startups $ 50 Million Series C The valuation in August last year was $ 450 million. With the latest funding, the company has raised approximately $ 450 million in total capital since its inception, raising $ 100 million for the entire seed and series C rounds.

With a background in consumer finance, Zac Prince founded Flori Marquez and Block Fi in 2017. The Jersey City, NJ-based startup ended in 2018 and was led by ConsenSys Ventures, raising $ 1.6 million in a seed round of funding included. Participation from SoFi.

Prince describes BlockFi as a financial services company for crypto market investors offering a range of retail and institutional products. On the retail side of the platform, people use mobile apps to earn yields on their holdings of cryptocurrencies (6% on Bitcoin, 8.6% on stable coins), buy and sell cryptocurrencies and secure by their value. Cryptocurrency portfolios that allow you to get low-cost loans that have been “so that they can get liquidity without selling,” he said. Specifically, clients can buy and sell digital assets (Bitcoin, Ethereum, Link to Litecoin, PaxG, multiple stable coins) directly on BlockFi.

The startup is also a lender and provider of transaction execution services to institutions participating in the digital asset market.

It’s a model that seems to work great. After the end of 2019 BlockFi has grown its client base from 10,000 to over 225,000. Today, BlockFi 265,000 funded individual clients and over 200 institutional investors.

It also lends over $ 10 billion to retail, corporate and institutional clients.

Over the past year, BlockFi has also achieved:

  • Assets on the platform increased from $ 1 billion last March to $ 15 billion — Since its inception, the loss ratio for the entire loan portfolio has been 0%.
  • Monthly revenue exceeded $ 50 million from $ 1.5 million in the previous year.
  • We increased the number of employees from 100 in March last year to about 530.

“In less than six months after completing Series C, Bitcoin and other digital assets have played a central role in many investor portfolios and the broader financial markets,” said Prince. I am. “Our belief that digital assets are the future of finance is evidenced by a client base that has grown 10-fold year-on-year in 2020 and has more than doubled since the end of 2020.”

Bain Capital Ventures, a new investor partner with DST Global, Pomp Investments and Tiger Global, co-led Series D. This included the participation of a number of other companies, including existing backers Valar Ventures, Breyer Capital, and S.usquehanna government products, Above all, jump capital and paradigm. BlockFi employees who have been employed for more than a year have the opportunity to receive some liquidity of their shares through a second tender offer as part of a funding round.

BlockFi believes that investor enthusiasm for the Series D round reflects both the company’s strong business growth and “a broad belief in cryptocurrencies as an asset class.”

“Individual investors, institutional investors and corporate finance are all looking for ways to invest in cryptocurrencies,” the company said.

“Our goal at BlockFi has always been to make it easier for cryptocurrencies to become mainstream, and every day we provide more evidence of what’s happening,” the company’s business said. Marquez, SVP in charge, said.

I also agree with Stefan Cohen, a partner at Bain Capital Ventures. He currently believes that the banking services available to crypto holders are limited and puts BlockFi in the right place.

“Bitcoin is already over $ 1 trillion in market capitalization and could be even higher to fulfill its value promises. As wealth accumulates in BTC holders, most people live in homes, cars. , Will look for ways to earn or borrow yields on their holdings for more traditional asset purchases such as education, “he wrote in an email. “BlockFi is independent as a leader in providing simple and secure everyday life. Financial services for cryptocurrency holders. “

Cohen proves that the exponential growth of startups over the past year “has a clear need for BlockFi services.”

“Their vision was to build an easy-to-use and reliable platform for mainstreaming cryptocurrencies, and they were really successful,” he added.

Meanwhile, Cohen said Bain Capital has a long-term treatise on how Bitcoin can become a valuable store and is now active in the “pick and excavator business,” which enables a market of over $ 1 trillion. He said he was investing.

“Reliable financial services are an important pillar in this area and we consider it a very strategic element of the market,” he added.

Going forward, the startup plans to launch in the second quarter. Bitcoin Rewards Credit Card, This allows BlockFi clients to earn Bitcoin Cashback in every transaction. We plan to use the new capital to continue to grow our product suite, expand into new global markets and make strategic acquisitions. According to Prince, the company also plans to double its workforce by the end of the year.

BlockFi already has a global presence and retail clients in more than 100 countries. Last year, we opened client service offices for institutional investors in London and Singapore. This year, the startup is considering adding regional support in Europe, APAC and LatAm for retail clients.

Last week, BlockFi was making headlines for other reasons.The company was a victim of “Abnormal assault” March 7, when an attacker spams the platform with fake sign-ups and abusive language.

for that reason, The company acknowledges that it has noticed that an unauthorized third party has begun attempting bulk sign-up on its platform on March 7.

“I don’t know the source of the email addresses used for these’sign-ups’, but they’re not from us. Absent BlockFi client email, “the company told TechCrunch. “Generally, this event was characterized as vulgar spam, and the total number of valid emails affected was less than 1,000.”

The company claims that the data from BlockFi has not been accessed and that data has not been compromised.

“Our client’s funds and data were protected throughout the incident,” the company added. “Since then, our engineering and security teams have taken steps to prevent such events from happening in the future. In addition, by contacting all valid email recipients directly, We apologize for the incident. “

BlockFi lands a $350M Series D at a $3B valuation for its fast-growing crypto-lending platform – TechCrunch Source link BlockFi lands a $350M Series D at a $3B valuation for its fast-growing crypto-lending platform – TechCrunch

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