BitPay Closes Extended $40 Million Series B Round
Global blockchain payments provider BitPay has closed its $40 Million extended Series B funding round, which brings its total raised capital to over $70 Million. New investors in BitPay include Menlo Ventures, Capital Nine, G Squared, Nimble Ventures (an affiliate of Passport Capital) and Delta-v Capital as well as individual investments from Christopher Klauss Family Office, Founder of Internet Security Systems (ISS), and Alvin Liu, Co-founder of Tencent. Aquiline Capital Partners led the initial Series B Round but extended the round due to increased investor demand.
Stephen Pair, BitPay CEO, commented: “BitPay had a record 2017 as we processed over $1 Billion in bitcoin payments. We brought on these new investors who can help BitPay scale globally to meet customer demand. 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.”
Menlo Ventures selected BitPay as its first institutional crypto investment after spending significant time researching the broader crypto and blockchain ecosystem. Menlo is committed to thesis-based investing, and prioritizes companies that are reshaping large and important markets through technology- and process-driven breakthroughs. BitPay joins the Menlo portfolio alongside leading companies such as Uber, Betterment, Roku, BlueVine, and Warby Parker.
Tyler Sosin, partner at Menlo Ventures, explained: “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,” “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. As the market leading crypto-processor, BitPay is well positioned to both benefit from and serve the fast moving crypto-ecosystem.”
Asia is a growing region for BitPay and as a result a significant portion of the Series B investors are from this region. Capital Nine is an Asian fintech corporation and investor with millions of customers across Asia. Other investors from Asia include Alvin Liu, Co-Founder of Tencent, and Yong An Financial Holdings Co., Ltd
Director of Capital Nine, Sam Lin said: “Bitcoin’s popularity is spreading rapidly throughout Asia and BitPay has an opportunity to extend its technology solutions across Asia. BitPay’s cross-border payment solution helps businesses pay or receive international payments faster and more economically.”
Hundreds of thousands of businesses around the world have signed up with BitPay to accept bitcoin payments, including popular brands like Microsoft, Newegg, Namecheap, Gyft, Takeaway, and Virgin Galactic. BitPay works with over 30 e-commerce and point of sale integrators to promote the use and acceptance of bitcoin. The BitPay Wallet consumer adoption is growing with a monthly average of more than $3 billion in transactions. In 2017, BitPay achieved record growth increasing revenues by nearly 700%. In 2014, BitPay raised a $30 million Series A round from investors including Index Ventures, Founders Fund, Felicis Ventures, RRE Ventures and Sir Richard Branson.