San Francisco-based Bitcoin Startup 21 Inc Raises $116 million

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San Francisco-based Bitcoin Startup 21 Inc Raises $116 million

San Francisco-based Bitcoin Startup 21 Inc Raises $116 million

Looks like the last one year has been great for Bitcoin startups as they have been able to manage huge sums in fund raising efforts. The latest name in the list of the startups that have been able to raise funds for their operations is Silicon Valley startup 21 Inc. The company has raised $116 million in venture funding.

At the occasion the company source claimed that the funds will be used for broadening the scope of Bitcoin technology. 21 Inc, a Bitcoin mining pool, is working on specially designed chips that will drive new equipment specifically aimed at doing this more efficiently. The company has yet to publicly reveal the exact nature of its operations though.

Some renowned investors flocked in at the fund raising effort. Some major names include venture capital firms such as Andreessen Horowitz and RRE Ventures. The chipmaker Qualcomm Inc owns a strategic stake through its venture-capital unit. Interestingly, 21 Inc has not disclosed an independent valuation.

Some other investors include Peter Thiel, Data Collective, Khosla Ventures, Yuan Capital, RRE Ventures, etc. amongst others. Khosla Ventures is known for investing in startups and helping them out emerge as leading companies. The owner of the investment firm has carved a niche for his strategic investment technique.

Talking to media professionals Chief Executive Officer and co-founder Matthew Pauker indicated that several interesting developments over the next weeks and months that will deal with products designed to drive mainstream adoption of Bitcoin. Mr. Pauker is known for co-founding data-encryption firm Voltage Security Inc.

He admitted that Qualcomm’s involvement is key as according to him with it he will be able to exploit the San Diego company’s mass-marketing and production capabilities in the development of a suite of consumer products that integrate with Bitcoin’s core technology called the “Blockchain.”

21Inc. Has Higher Ambitions

Nonetheless, Qualcomm’s involvement could spur speculation that 21Inc. has its sights on the so-called “Internet of Things.” The company has gone through rebranding process as it started out under the earlier name of 21e6. However, later on it changed its name to 21Inc. which stands for the 21-million limit that Bitcoin’s managing algorithm imposes on Bitcoin to be released.

The firm says that the money flow is paving the way for products and services aimed at transitioning Bitcoin from its volatile. It will help the firm help Bitcoin ecosystem become secure with sound infrastructure.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com