Coinify Announced VC Funding Round - Essay Example

Coinify to Build Complete Bitcoin Solution for Europe

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An undisclosed venture funding round was announced by Coinify. The company also shared a range of strategic deals that target to position it as the prominent Bitcoin services company in the European market.

In May Coinify, a Denmark based company, acquired a portfolio of services from other established market players.

They purchased broker Bitcoin Nordic, established domestic bitcoin, and the merchant services that were previously offered by Bitcoin Internet Payment Systems.

Hans Henrik Heming, CEO of Coinify, explained that the new company is a natural pursuit for him as he is an established entrepreneur and also a bitcoin advocate.

Previously, Heming founded social graph specialist Wosju, social software consultancy Wemind and idea lab Fourmation.

He told in an interview that he read about Bitcoin in 2012 for the first time. He looked into the industry in detail since 2013.

Coinify announced a multimillion-dollar investment earlier this week from SEED Capital, Denmark-based VC firm. The firm is supported by The Danish Growth Fund, Denmark’s state investment fund.

The full amount of the funding was disclosed by neither Coinify nor SEED Capital in the interview. However, SEED Capital wrote in an official blog post that the amount was 7 million DKK.

After the announcement, Heming publicly stated that Coinify will close the Bitcoin Nordic site but BIPS will continue as a separate entity and will specialize in Bitcoin technology development.

Among Coinify’s many services, it will primarily focus on extending the buy and sell services to customers and the processing services to merchants.

Coinify gives businesses the options to accept Bitcoin and take next-day settlement in dollars, euros, kroner or other currencies.

Coinify now also offers a plug-in for the popular merchant-facing e-commerce platforms. The plug-in will allow merchants who are already using Magento, BigCommerce WooCommerce and Shopify integrate bitcoin payments easily.

Consumers will have to use an email address first to create an account and enroll. From the account, the traders can purchase Bitcoin with bank deposits or through prepaid online and CASHU, a mobile phone payment method. Merchants too can log into their individual accounts using Facebook.

Coinify is eager to establish itself all over Europe but with their desired capital and services secured, the company now focuses on increasing its influence in the key markets Denmark, Sweden, Norway and the UK.

Heming said that UK and Germany are particularly significant markets as they play as leaders in the e-commerce market. He added that Coinify aims to carry out market research in these locations.

The CEO said that what the company has done till now was a reactive approach. They waited for people to sign up. Now, they aim to be much more active at obtaining merchants.

It is expected that Coinify will face notable competition from other brokerage services in the market. Some examples are services offered by Coinbase and Safello.

Coinify aims to differentiate it from these competing players. Heming hinted that his company’s goal is to launch 2 extra services in the coming months.