Bitcoin businesses are emerging as the right choice for venture capitalists as they realize it can pay better returns. In the latest bid to attract investments, TradeBlock, an online cryptocurrency data provider, received $2.8 million. Leading investors were Andreessen Horowitz, Second Market’s Barry Silbert, Devonshire Investors, and FinTech Collective.
Andreessen Horowitz has to date invested less than $50m in Bitcoin companies. Thus, the money is flowing in to Bitcoin-related businesses this year. Whereas in the second quarter venture capitalists injected $73 million, they invested $57 million in the first-quarter. The biggest gainer in terms of receiving funds was BitFury that got $20 million.
The newly found love for Bitcoin among the businessmen is due to its increasing acceptance and value. The money collected from the bid is going to be used for the expansion of the staff; currently, there are just five persons working for the firm. However, the organization aims to double the number and focus on data and data products and services.
The co-founder of the firm Greg Schvey informed that this was the firm’s first fund-raising effort. He admitted that the outcome has been positive and the company managed to raise the amount they had targeted as people understand and knew the vision. Formed the last year by two brothers Greg, 27, and Jeff Schvey, the last year, TradeBlock began as a side project.
Money to Be Invested in Improving Order Management System
However, now it generates revenue through clients who pay for its products. Jeff Schvey believes that the company has many assets traded over the Blockchain and not just currencies, but securities and contracts and such are included in it. He said that he will continue to want to be the place people go to analyze.
Now, armed with new capital, TradeBlock is looking to empower its customers with improved offerings as well. According to Greg specified that TradeBlock works exclusively with institutional clients, and aims to increase their efficiency in analyzing, understanding and transacting within the new technology.
Moreover, as the underlying protocol itself is open source and by the way it works, has to be publicly available. The organization says that with $2.8m in new funding, it is going to focus heavily on improving its order management system for over-the-counter trading.
He clarified that he is looking at block chain technology as a protocol through which any titled asset can be transferred.
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