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One of the oldest venture capital firms in Silicon Valley is pioneering in the world. blockchain ecosystem with an investment in crypto-currencies. BitPay.
The investment, announced Monday, registered as part of a $ 40 million financing cycle, the largest in the history of the Atlanta-based company since almost seven years. It’s also the first time that Menlo has taken a stake in a cryptocurrency-related start-up.
Founded in 1976, Menlo was one of the first venture capital firms in Silicon Valley, and included technological favorites such as Uber, Roku and Tumblr among its portfolio companies. However, he had not yet joined so many of his peers to get acquainted with the booming blockchain sector – until now.
The funding round was BitPay’s first since 2014, when it raised $ 30 million in a round that included Virgin Group founder Richard Branson, AME Cloud Ventures, and Peter Thiel’s Founders Fund.
According to Recode, several leading venture capital firms have embraced the current funding cycle because they believe the prevailing trends in the cryptocurrency industry – that cryptoassets are primarily commodities and No currencies – create uncertainty for the payment processing business. despite its leading role in this sector.
The publication also noted that BitPay had made the unusual move to announce the funding cycle before it closed, which some observers took as a possible indication that the company was having difficulty reaching its target. BitPay CEO Stephen Pair has denied the rumors.
“We wanted to make sure that anyone who wanted to participate could, and announced, serve this purpose,” he said, noting that the company had raised $ 40 million despite an initial goal $ 30 million. and half.
And while Bitcoin transaction fees have declined in recent months, BitPay – which processed more than $ 1 billion in payments in 2017 – has begun to take steps to support additional cryptocurrencies focused on payments. Last week, the company updated its merchant tool to accept Bitcoin Cash payments, and said it would add support for more altcoins in the future.
Image from Shutterstock to photo
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