Google Ventures Invests In Bitcoin Startup Blockchain

A bitcoin startup called Blockchain just raised $40 million from Google Ventures, billionaire Richard Branson and venture capital firms like Lakestar. Combined with earlier investments from the startup’s A round, Blockchain has raised around $70 million and become one of the best-funded cryptocurrency startups of 2017, behind power players like Ripple and Coinbase.

The company claims to host 14.7 million bitcoin wallets, which not only store cryptocurrency but also allow users to buy bitcoins directly through Blockchain’s platform. Blockchain CEO Peter Smith told CNBC the new funds will help expand the team, opening new offices around the globe, plus support research and development as the company scales to meet surging demand for bitcoin.

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This isn’t the first time Google has taken an interest in cryptocurrency. GV also invested heavily in Ripple and contributed more modest funds to the now-defunct bitcoin exchange Buttercoin. It was probably Blockchain’s teeming user base that attracted old school tech giants this time around. A Blockchain representative told International Business Times in an email the platform hosts around 200,000 daily transactions and has seen 15 percent week-to-week growth in traffic.

“The pace of innovation in the digital currency space is unmatched,” GV partner Tom Hulme told Bloomberg. “We were impressed by Blockchain’s consistent market traction and dedication to building secure financial products for an increasing number of users.”

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Although the price of bitcoin continues to rise, mainstream investors have been relatively slow to join the cryptocurrency gold rush. A recent survey by Monex Group found only 3 percent of retail investors in Japan and the United States said they have invested in virtual currency, so many cryptocurrency startups are turning to tokenized fundraising to get capital directly from the blockchain community.

Blockchain was founded in 2011, making it a mature and well-established company by cryptocurrency standards. Smith told CNBC Blockchain bitcoin wallets already see “billions of dollars” worth of activity every month, including deposits and transactions.

This B round of fundraising started months ago before the price of bitcoin surged and initial coin offerings became a widespread trend. The Blockchain representative told IBT that ICOs are exciting, but the company doesn’t have plans to get involved with tokenized fundraising at this time. It remains to be seen if interest from tech giants like GV will inspire more traditional venture capitalists to take note of cryptocurrency.