Bitcoin startup Coinbase receives $25m investment from a16z

Bitcoin startup Coinbase receives $25m investment from a16z

Summary: Coinbase's Series B comes shortly after Aussie startup Coinjar gets its own AU$500,000.

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US Bitcoin wallet and merchant services provider Coinbase has raised US$25 million in a B Series round led by investment firm Andreessen Horowitz.

A16z, as it is colloquially known, is joined by Union Square Ventures and Ribbit Capital in the round, and bring the total capital raised by the startup to US$31 million.

The company has brought Union Square Ventures founder Fred Wilson and a16z investor Chris Dixon on to its board. Dixon wrote on his blog that Bitcoin itself is "the first plausible proposal for an economic protocol for the Internet", and that he believes Coinbase is to Bitcoin as web browsers are to HTTP.

The funds will be used to expand Coinbase's team and to promote and market Bitcoin. It is averaging 10,000 new customers each day and is working with 16,000 merchants.

A similar startup in Australia, Coinjar, has also recently seen an injection of funds from venture capitalists betting on Bitcoin adoption to increase.

Coinjar raised AU$500,000 from Blackbird Ventures in November and represents one of the few ways that Australians are able to purchase Bitcoins with Australian currency.

It is already seeing some friction with local banks, with the Commonwealth Bank of Australia earlier this year closing its business account without warning, then closing two personal accounts of its founders without notice.

The startup has also refused to honour transfers from ANZ bank accounts due to a high level of fraud and the bank not implementing what it believes to be acceptable security measures. It is the only bank out of the big four that still lacks two-factor authentication for consumers.

Topics: Start-Ups, Banking, E-Commerce

Michael Lee

About Michael Lee

A Sydney, Australia-based journalist, Michael Lee covers a gamut of news in the technology space including information security, state Government initiatives, and local startups.

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2 comments
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  • Two Factor?

    I'm with NAB and there's no two factor authentication available. Plus your password can only be 6 characters and no non alpha numberic characters. I think they need to review all the banks.
    gr1f
  • NSA, CIA, FBI are coming in the world of digital currency

    NSA, CIA, FBI are coming in the world of digital currency, bitcoin, through company called Coinbase. When I visited page About at Coinbase website, I had what to see. There is list of investors and I checked just 2 of them and the both worked for NSA.
    Greg Kidd worked for Booz Allen which is sub-contractor of NSA, Edward Snowden worked also for Booz Allen.
    Garry Tan is a Partner at Y Combinator and earlier he worked for Palantir. Palantir created Prism software for NSA, Palantir is worth $9 billion and in December 2013 they raised another $107.5 million. Their clients are NSA, CIA, FBI and banks. Investment bank Morgan Stanley & Co. earned a $7 million commission on the funding round. Palantir was founded in 2004 by Peter Thiel, the investor and PayPal co-founder, and Alex Karp. Its last funding round, of $196.5 million, was in September. Backers include Thiel’s Founders Fund and the CIA’s venture arm, In-Q-Tel.
    Other investors are: SV Angel, IDG Ventures, Union Square Ventures, Y Combinator. Adam Draper, Ribbit Capital, Start Fund, FundersClub.
    The newest investment in Coinbase, mentioned 25M in Series B funding, has been led by Andreessen Horowitz with participation from investors Union Square Ventures and Ribbit Capital. This money will be used to attract more people to use Bitcoins. But again, partner manager in Union Square Ventures is Brad Burnham who is co-founder of advertising company Tacoda that spies our browsing habits the same as Google and Facebook, and he is manager at AT&T Intellectual Property which invest in business of interest for AT&T which again cooperate with NSA.
    The whole article at: http://blog.predicsasa.com/computers/coinbase-raises-25m/
    kropotkinbakunin