A new round of venture capital funding has propelled Coinbase to a level unto itself. The company now has a valuation greater than $1 billion.
On August 10, 2017, Coinbase announced that it raised $100 million in Series D funding. This fourth stage of funding was led by IVP. The $100 million investment is expected to help the San Francisco-based cryptocurrency exchange achieve its ambitious goals to “create an open financial system for the world.”
IVP has a track record of investing in some of the most prominent tech companies: Snap, Slack, Twitter, Netflix, and Dropbox. Of the over 300 companies it has backed, 106 have gone public.
Firms that participated alongside IVP in this financing round included Spark Capital, Greylock Partners, Battery Ventures, Section 32 and Draper Associates. “We’ll be using this new funding to continue scaling even further,” stated Coinbase founder and chief executive officer Brian Armstrong in a blog post earlier today.
Specifically we will:
- Increase the size of our engineering and customer support teams to improve the customer experience.
- Open a GDAX office in New York City, further investing in our ability to serve institutions and professional traders.
- Invest in Toshi, to help accelerate digital currency’s shift from speculative investment to global payment network.
Coinbase was founded in 2012 and is growing significantly during 2017. It is widely regarded as one of the world’s leading digital currency exchanges and avenues for converting traditional fiat to cryptocurrency assets. It supports retail trading for Ether, bitcoin, and litecoin in 32 countries and has facilitated $25 billion in cryptocurrency transactions for its customers.
One of the more notable uses for the Series D funding will be Coinbase’s initiative to expand its offerings to institutional and professional cryptocurrency traders by opening a new office for its Global Digital Asset Exchange (GDAX) in New York City. This move is likely to draw interest from corporate entities seeking to expand their holdings into cryptocurrency, and builds upon Coinbase’s previous efforts to expand into the country’s financial capital by obtaining a New York Department of Financial Services BitLicense.
Coinbase also intends to allocate a portion of its new funds into developing Toshi, its open source browser for Ethereum, which was originally called Token. Coinbase hopes that this new Ethereum mobile browser will not only provide a starting point for people to truly control their own wealth digitally, but allow everyone on the planet an opportunity to have access to financial services.
Coinbase’s valuation is now around the $1.6 billion mark, and it has made clear that these new investments will be reinvested into the company to help carry cryptocurrency into the future.