Coinbase Raised $5M Funding For Bitcoin Startup
Bitcoin startup are beginning to boom again. According to Wall Street Journal, Coinbase’s founders Fred Ehrsam and Brian Armstrong announced Tuesday the largest funding round to date for a Bitcoin startup, a $5 million investment led by Union Square Ventures. San Francisco based Coinbase was founded in June 2012. The company has raised $600,000 in initial seed funding from investors in early days.
Coinbase, a digital wallet for Bitcoins, also allows merchants to put a “Pay with Bitcoin” button on their website to make transactions easier. Majority of their revenue comes from buying and selling Bitcoins directly from Coinbase with a one percent fee on each transaction.
In April, company claimed about 116,000 members who converted $US15 million of real money into Bitcoin, up from $US1 million in January. Company also claimed an increasing business rate of about 15% a week, and its user base is growing at 12% weekly.