Payment processor BitPay has announced the completion of its Series B financing, securing $40 million in new capital. The investment pushes the company's total fundraising to $70 million since its 201
Payment processor BitPay has announced the completion of its Series B financing, securing $40 million in new capital. The investment pushes the company's total fundraising to $70 million since its 2011 inception.
Leading the round, Aquiline Capital Partners brought aboard Menlo Ventures, Capital Nine, G Squared, and Nimble Ventures as co-investors. The company has now attracted backing from across the globe, with particular strength in Asia, a region contributing significantly to its user base and transaction volume.
BitPay's 2017 performance demonstrates the momentum behind the company's growth trajectory. Over the past year, the payments processor facilitated more than $1 billion in bitcoin transactions. CEO Stephen Pair credited the expanding investor base with enabling ambitious next steps: "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."
The new capital comes as BitPay targets aggressive expansion in Asian markets. Capital Nine, a fintech platform with a substantial user base in the region, rounds out the investor group alongside prominent figures including Alvin Liu, co-founder of tech giant Tencent, and backing from Yong An Financial Holdings Co.
For some participants in this round, BitPay represents their initial venture into cryptocurrency. Menlo Ventures, a storied investment firm with roots dating to 1976, has devoted considerable analysis to blockchain markets before committing capital. Partner Tyler Sosin explained the decision: "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."
The current funding round concludes a four-year gap since BitPay's Series A, when the company raised $30 million from Index Ventures, RRE Ventures, and backing from Sir Richard Branson. The company has grown to serve hundreds of thousands of merchant accounts across the globe seeking to accept digital currency payments. With this new backing, BitPay appears positioned to accelerate both its merchant network and product development.
