Venture capitalists invest in startups related to Bitcoin

October 2
12:11 AM 2013

Venture capitalists did not show any signs of shying away from startup investments related to Bitcoin. This was amid authorities probing numerous virtual currency and its possible connection to money laundering and other illegal activities, said a Reuters report.

Investments to startups related to Bitcoin had increased in recent months. This was after the digital currency had started to gain footing among consumers and businesses. This was a key step for the company, which was not backed by a central bank or government, to go main stream.

Startup firms that included Coinbase and BitPay Inc. would help facilitate bitcoin adoption by consumers and sellers. Both companies had raised millions of dollars so far. Bitcoin trading had also grown in interest, investment funds and "mining". The latter is a process of making the digital currency, according to a Reuters report.

In three months ending last June, Bitcoin startups had raised around USD12 million from venture capital investors in a total of seven deals. This was according to a CB Insights data, a New York based venture capital data firm. This was comparable with just five deals which totaled less than USD2 million in the previous four quarters.

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