Vaurum Secures $4 Million in Funding Round Led by Battery Ventures.
A cryptocurrency company developing high-performance, Vaurum, a bitcoin exchange software for financial institutions, have recently secured a total of $4 million in financial funding from Battery Ventures and angel investors, including Tim Draper, and co-founder and managing director of investment firm Draper Fisher Jurvetson , and the former chairman and chief executive of America Online, Steve Case.
Vaurum shall use this recent funding to scale its engineering team and further develop its white-label platform for financial institutions.
“There’s a great global demand by investors today to trade virtual currencies, mainly bitcoin, but in practice it’s not very easy for people to do, whether they’re sophisticated institutional investors or underserved populations in developing economies,” said Avish Bhama, co-founder and CEO of Vaurum. “Most investors –even savvy institutions — need an easy-to-use and compliant platform through which to buy and sell bitcoins, and we provide that solution.”
The company’s software is currently is currently being used by some large financial institutions, include broker-dealers, hedge funds, foreign-exchange dealers, commodity-trading firms and much more. Vaurum works with these institutions to “white label’ its software, enabling the firms to run their own exchange and offer bitcoin trading towards their customers.
“As there are network effects to bitcoin, the market continues to increase in size, and more governments are setting up regulatory regimes to deal with digital currencies — just as more businesses are starting to accept bitcoin as payment,” said Roger Lee, general partner, Battery Ventures. “There is a need for a secure bitcoin-trading system, and we look forward to supporting Vaurum as it grows this nascent market.”
CEO of Vaurum, Bhama, began the company alongside co-founder Sean Lavine after working for several year in financial market as a fixed income trader and foreign exchange analyst at tech giant Apple. He experienced it at first-hand on how global companies often keep their stored in overseas local currencies due to capital controls and tax liabilities, and came to realize the need for a new system to enable something similar to cloud-based money, which could be transferred more easily.