Vaurum, a bitcoin start up has received seed funding amounting to $4 million from Battery Ventures, Tim Draper and Steve Case, as investors remain bullish about the virtual currency.
The capital input comes the day after the introduction of Future Capital Bitcoin Fund and one week after Bloomberg said it intended to start listing bitcoin prices on its prices.
Vaurum, which is among more than a dozen digital currency startups that have benefited from venture funding during the last one year, will utilize the round of funding to enhance its engineering team and continue developing its system, the Wall Street Journal said.
The company employs a different model, whereby it’s developing a white level system that will make it possible for financial institutions to host their own digital coin exchanges, unlike trade firms such as BTC China and Buttercoin Inc, which have also generated seed funding.
Vaurum was created in 2012 and is based in Palo Alto, California and said it was licensing broker-dealers, hedge-funds and other virtual currency firms to use its technology.
Battery Ventures is supporting Vaurum from a $900 million pool of capital. The firm has not backed another bitcoin startup before.
Several bitcoin-oriented firms have come up in the past one year including Bitcoin Opportunity Fund, Pantera Capital and Bit Angles, alongside conventional venture businesses which are putting their money on bitcoin startups.
“Most investors—even savvy institutions—need an easy-to-use and compliant platform through which to buy and sell bitcoins, and we provide that solution,” Coindesk quotes Avish Bhama, Vaurum CEO as saying in a prepared statement.
The CEO told Coindesk that most of the funds will be channeled towards hiring more engineering staff. A portion of the capital will be utilized in spending related to compliance to regulations.
The bitcoin startup has not named any of its present customers.
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