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Stablecoin Startup BVNK Seeks Funding After Major Deal by Stripe - BLOOMBERG
November 15, 2024 at 1:00AM EST
(Bloomberg) -- Stablecoin payments company BVNK is in early talks with investors to raise a new funding round as excitement over its corner of the crypto market builds following a landmark acquisition by Stripe Inc.
The Tiger Global Management LLC-backed startup is talking with potential backers with the aim of raising at least $50 million, according to people familiar with the matter who asked not to be identified as the talks are private. The size of the raise and BVNK’s valuation are subject to change at this early stage of negotiations, the people added.
BVNK declined to comment in response to questions from Bloomberg News.
Fintech giant Stripe announced a $1.1 billion deal to acquire stablecoin startup Bridge in October, stoking interest in the sector. There is strong investor appetite for the BVNK round as well as for stablecoin payments startups in general, the people familiar with the matter said.
Stablecoins are a type of cryptocurrency designed to mimic the price of an established fiat currency and are typically underpinned by reserves. Minimal volatility made them a popular tool for money transfers, originally among crypto firms, and increasingly for corporates. Stripe Co-Founder Patrick Collison said in an X post in October that the technology would bring “significant speed, coverage, and cost improvements” for businesses.
Venture firms profited handsomely from the Bridge deal, with lead investor Sequoia Capital raking in over $100 million, Bloomberg News earlier reported. Chris Ahn, a partner at Haun Ventures, which had a 4% stake in Bridge, touted the deal as a “trigger moment for other tech firms to go on the offensive.”
On Wednesday, crypto exchange operator Coinbase Global Inc. announced the acquisition of Utopia Labs, a stablecoin payments startup.
London-based BVNK was founded in 2021, employs more than 270 people and processes $8 billion in payments annually, according to its website. The startup last raised money in May 2022, when it secured $40 million in a round led by Tiger Global. Other backers include The Raba Partnership, Avenir, Kingsway Capital, Nordstar, Concentric and Base Capital.
The company holds regulatory licenses in countries including the UK, Spain, South Africa and Malta, according to its website.
