Startup BitGo, the Creator of cryptocurrency wallets with multipolicy for enterprises, has completed a financing round of series B in the amount of 42.5 million dollars. This event can be considered a sign that the market finally began, the demand for enterprise solutions. Round B of funding led by Valor Equity Partners and the past with bill Lee (Bill Lee) and David sacks (Sacks), along with a round of Serie A ended in June 2014, in total, brought the company $ 55 million investment.
In the framework of the investment Antonio Gracias (Gracias Antonio) (member of the Board of Directors of the companies, SpaceX and Tesla) and David sacks (co-founder of PayPal and Yammer) joined the Board of Directors of BitGo. Strategic investor don Wilson (Don Wilson), the founder of trading firm DRW and co-founder of blockchain startup focused on Digital Asset will also join the team BitGo as a counselor.
This year became for the company BitGo, founded in 2013, turning and it started even before the influx of institutional funds has helped bitcoin reach record highs. As a result of this maturation of the market BitGo for the first time this year brought a profit. The company created a corporate product when most other startups in the space have focused on the spread of bitcoin among ordinary people.
With such clients as CME Group, which next week plans
the launch of futures trading bitcoin, BitGo handles transactions in bitcoins at $ 8 billion per month, charging a Commission for each of them.
In an interview with co-founder and CEO of BitGo, Mike Bells (Mike Belshe) told about the long path of the company to achieve profitability and one of the largest venture capital industry in the blockchain.
«We were behind the scenes, creating a larger and more perfect system».
Support for multiple crypto-currencies
After its Foundation BitGo focused on enabling enterprises to securely use bitcoin on a wallet, that requires multiple cryptographic signatures.
However, in recent years the company has evolved to meet institutional demand for «hot» (online) and cold (offline) storage of six currencies, including bitcoin, ether, Ripple and Bitcoin Cash.
Belich notes that the new investment will allow the company to expand this pool of currencies «at least» another three in 2018, and more importantly, faster to add new currency that appear during the forks. Currently, the addition of these currencies can sometimes take several days or even weeks.
Balls also said that in addition to supporting new currencies BitGo intends to invest in the development and implementation of solutions for scaling, such as Lightning Network, «which are able to make payments outside the network». He believes that it is critical to scale solutions to its clients.
Finally, Bells in General spoke of «a number» of other features which will be studied, thanks to increased funding.
«Ahead we see great opportunity. We know they will lead to significant growth, and we coordinate the resources that we need in order to profit from it».
Patience is the path to perfection
BitGo appeared in the same year, when the price of bitcoin rose from $ 100 to $ 1000, before starting a slow and prolonged decline, due to limitations in China and the collapse of MtGox. In the end, the industry got out of the created pit, mainly due to retail purchases on exchanges such as the BTCC, Coinbase and Kraken. While institutional investors, which was interesting BitGo, remained on the sidelines.
«We had a quiet 2014 quiet 2015, in 2016, we slowly began to grow, but still rather slowly,» said Bells. «And finally come 2017 — traditional Finance and institutional investors here. They are desperately looking for opportunities and thinking – what can we do?».
Earlier this year the company first started to make a profit, mainly due to one party of income: transaction fees charged to those who use hot wallets. Less a considerable amount of income is attributed to cold storage. With the beginning of the year, the company increased the number of their employees doubled from 20 to 40 people. Despite the patience of Bells and his team have shown over the last few years, it took a modest position, explaining the rapid growth this year as follows:
«The industry grew up and we grew up together with her.»