Menlo Ventures Leads $40 Million Series B Investment in Bitpay, a Coinbase Competitor
Global bitcoin payment service provider, Bitpay, has announced the closing of a $40 million Series B investment, led by Silicon Valley investment juggernaut Menlo Ventures. This marks the first crypto investment by Menlo Ventures and it is also one of the largest investments by a mainstream VC firm since Andreessen Horowitz led the $116M Series B for the token-based email network, Earn.com.
According to Bitpay CEO Stephan Pair, the funds will be used to help the company further expand its operations in growing markets across Asia. Tyler Sosin, a partner at Menlo Ventures, believes Bitpay is well-positioned to disrupt the B2B payment market:
“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.”
As the Initial Coin Offering (ICO) landscape becomes more unforgiving for startup blockchain companies, more traditional sources of funding, such as venture capital, are rapidly becoming more popular.
According to data compiled by Crunchbase, over 130 blockchain and blockchain-adjacent startups have raised venture capital funding through the first two months of 2018 alone. With current trends, it is anticipated that total blockchain venture capital funding will surpass $1 billion in 2018.
Some of the largest investors participating in blockchain startup venture rounds, include Digital Currency Group, SOSV, and Draper Associates.