BlockFi has raised $30m from top-tier investors including Valar Ventures, Morgan Creek Capital, Arrington XRP Capital, Winklevoss Capital and more. The round was led by Peter Thiel’s Valar Ventures that focus on fintech. Some of Valar’s previous investments include N26, Transferwise, Xero and more.
The blockchain-base financial services industry has been heating up in 2020 with DeFi growing 30% MoM and more competitors than ever entering the space. BlockFi claim to differentiate by being “the only crypto company to offer a suite of financial products that seamlessly interact with one another.”
Some of BlockFi’s products include savings accounts that provide up to 8.6% APR on USD stablecoins. Their other savings accounts include Bitcoin, Litecoin, Ethereum and more with varying levels of interest.
BlockFi also offer crypto-backed loans that allow investors to access liquidity without any credit checks, fees and near instantaneous decisions.
Interestingly, BlockFi’s assets have ballooned to $650m with a 0% loss rate across their entire loan portfolio. They also managed to increase their revenue 2,000% in 2019. This is what has led to this round of funding from such prominent investors.
“We were proud to have made our first investment in the crypto sector with BlockFi, and we’re excited to continue propelling the company forward as they define the industry standard for what a modern financial services company for cryptocurrency looks like,” said Andrew McCormack, general partner at Valar Ventures. “To say the least, BlockFi has been one of the most successful companies we’ve invested in right out of the gate.”
“At BlockFi, we believe that access to wealth-building financial products shouldn’t be limited by geography or net worth. With this investment, we’re one step closer to realizing that vision,” said Zac Prince, CEO and Co-Founder, BlockFi. “As our platform continues to mature, BlockFi clients benefit from more diverse products, and in turn, greater financial empowerment.”
“For most people, cryptocurrencies are something out of speculative fiction. Adoption of these assets is limited by the average consumer’s ability to understand how to use them,” said Flori Marquez, VP of Operations and Co-Founder, BlockFi. “We’ve demonstrated that we can build financial products around cryptocurrency that can look and feel like the apps you already have on your phone, and we’re well-positioned to drive mainstream adoption.”
Their aim is to use these funds to grow their head count, launch a mobile app, additional financial services and open a new office in Singapore to service their Asia Pacific institutional clients.