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Bitcoin startups get hotter: BitPay nabs $2M from Founders Fund & others

There’s no shortage of money being thrown at digital currency Bitcoin. Last week, Bitcoin wallet startup Coinbase scored $5 million in funding. And this week, both Boost.VC and Liberty City Ventures allocated more funding for Bitcoin-focused startups.

Now relatively young Bitcoin startup BitPay has announced it has raised $2 million more in funding to lead the market in Bitcoin payment processing. This follows a $510,000 seed round it raised in January.

BitPay specializes in e-commerce, B2B, and enterprise solutions for Bitcoin, and it claims processing fees as low as 1 percent with no setup fees. It signed up more than 1,900 new merchants in April, and it claims to sign up about 100 new merchants per day at this point.

The new funding was led by Founders Fund, the fund behind the so-called “PayPal Mafia.”

“We were not looking to raise any capital until later this year, but we could not ignore the opportunity to have Founders Fund involved with BitPay,” BitPay CEO and cofounder Tony Gallippi said in a statement. “There’s no single investment firm we would rather have on our team right now than Founders Fund.”

Also on the round is Max Keiser’s fund Heisenberg Capital, a London-based fund targeting Bitcoin-focused companies.

Bitcoin artwork via Deviantart

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