BitPay's $40M funding round to fuel B2B, cross-border growth
The blockchain payments provider BitPay has raised more than $70 million to date after completing a $40 million funding round this week.
The funding round comes on the heels of what the company cited as a record year in 2017 in processing more than $1 billion in bitcoin payments. BitPay plans to use the new funding to expand to new markets and support B2B payments.
"We brought on these new investors who can help BitPay scale globally to meet customer demand,” Stephen Pair, BitPay's CEO, said in a press release. “Our goals include key hires in engineering and regulatory licensing, as well as expansion into emerging markets in Asia — one of BitPay's fastest-growing regions for transactions and wallet adoption.”
New investors include Menlo Ventures, Capital Nine, G Squared, Nimble Ventures and Delta-v Capital. Individual investments came from Christopher Klauss Family Office, founder of Internet Security Systems; and Alvin Liu, co-founder of Tencent.
“We gravitated towards BitPay because we felt the company had identified a killer use for crypto in facilitating low cost payment solutions for cross-border commerce and B2B payments, which is a massive market poorly served by the existing payment rails,” Tyler Sosin, a partner at Menlo Ventures, said in the release. “We are impressed with the company’s execution—it has demonstrated extremely efficient growth and a stickiness with merchants and consumers that is the hallmark of many great payment service providers."
Asia is a growing region for Atlanta-based BitPay and, as a result, a significant portion of the Series B investors came from that region. Capital Nine is an Asian fintech corporation and investor with millions of customers across Asia.
BitPay says hundreds of thousands of businesses globally have signed up with BitPay to accept bitcoin payments, including brands like Microsoft, Newegg, Namecheap, Gyft, Takeaway and Virgin Galactic.
It also cites BitPay Wallet consumer adoption as growing with a monthly average of more than $3 billion in transactions.
The company raised its initial $30 million in a Series A funding round in 2014, but suffered a bitcoin phishing attack that cost it $1.8 million in 2015.