Bitcoin companies have been receiving not just attention from around the world but a lot of venture capital as well. The latest addition to the list of the companies that have received funding from venture capitalists is BitFlyer, a Tokyo-based Bitcoin exchange. The company says that it received approximately JPY 510m ($4m) through third-party allotment on August 12.
According to the company’s CEO and founder Yuzo Kano the funds raised would be used to bolster the exchange’s security and improve its management system. He was quoted saying:
In addition, bitFlyer will take advantage of synergies available with each investment organization, and will continue to promote customer base expansion, strengthen revenues, and expand our global business development.
Launched in April of 2014, BitFlyer aims to fill the gap in the Japanese market since the crash of Mt. Gox which lost Bitcoins worth hundreds of millions of dollars from the investors and facing several legal issues. After the collapse of Mt. Gox though the support for Bitcoin exchanges did not fall, it became less visible as confidence was shaken.
The announcement from BitFlyer informs that venture capital firms like Venture Labo, Dentsu Digital Holdings, Mitsui Sumitomo Insurance, financial media group Quick, and Mitsubishi UFJ Capital Company Limited, etc. were the part of the funding round. Nonetheless, BitFlyer has become the first investment for Mitsubishi UFJ Capital Company Limited (MUCAP).
Interestingly, MUCAP is one of the oldest leading venture capital firms in Japan which has financed more than 1000 companies, and currently has funds of about $500M invested in 500 firms. Getting the companies like MUCAP was a daunting task for BitFlyer; however, as the venture capitalists see huge potential in Bitcoin, they are eager to invest.
The Funds Will be used for Further Expansion
The company also informs that earlier in January a fundraising round of approximately JPY 130 million was closed “in order to expand its comprehensive Bitcoin platform and marketplace. According to the firm among investment organizations there were RSP Fund No. 5, GMO Venture Partners and Bitcoin Opportunity Corp.
These companies have invested in bitFlyer as well as in several Bitcoin companies in 2014. Nonetheless, the Bitcoin exchange that promises to bring next generation encryption by VeriSign and provide safe and secure Bitcoin transactions with the help of verification done by the real people aims to expand with the money it has received through funding.
To contact the reporter of this story: Deepak Tiwari at email@example.com