Leading a $25 million funding round, Goldman Sachs and Google back blockchain startup Veem, a streamlined cross-border payments platform that uses bitcoin to transfer funds for small businesses, removing the need of banks.
The San Francisco-based startup aims to transform the global payments space for small businesses, leveraging blockchain technology to increase speed and security with accurate tracking, whilst offering the lowest possible fees. Veem states that its:
“dedicated account managers have ensured the transparency large financial institutions can’t offer”
Veem uses an algorithm to route transactions automatically among the most efficient payment rails, and currently processes more than half of its transactions with Bitcoin (BTC) to connect its clients’ bank accounts with suppliers.
Its rapid growth is vastly attributed to its integration with online accounting services such as Netsuite, QuickBooks, and Xero. Further proving its effectiveness of turning Veem payment recipients into Veem users, according to the press release, since it’s series A funding round of $5 million in July 2015, Veem has grown from 590 customers to:
“over 80,000 small businesses in 96 countries.”
The blockchain startup previously raised $26 million in its Series B funding round in March 2017, bringing the total amount raised to $69.3 million.
Now Veem says that it plans to use the funds to develop automated anti-money-laundering (AML) and know-your-customer (KYC) compliance technology, as well as to integrate new partners.
As stated in Veem’s press release, Goldman Sachs led the funding round via its ‘Principal Strategic Investment Group’ (PSIG), and was joined by a number participants including Silicon Valley Bank, Extol Capital, Trend Forward Capital, Kleiner Perkins, Pantera Capital and GV (formerly Google Ventures).
“We’re thrilled to have Goldman Sachs lead our investment round. This funding will help us expand our footprint, increase our distribution and form new strategic partnerships,”
Forzley himself has a stellar reputation within the alternative payments sector, having previously founded eBillme Inc., which was purchased by Western Union in 2011 for an undisclosed amount.
GV general Partner, Karim Faris, who also sits on Veem’s board of directors, believes that Veem could become the first bitcoin startup to go public, he added that GV is not a strategic investor, it expects its investment in Veem to deliver a financial return, or an eventual IPO.
Goldman Sachs has a growing portfolio of blockchain investments, citing its focus on those that offer added value for its clients, such as that of Digital Asset Holdings, the blockchain startup that was selected to offer enterprise level solutions for the launch of the Google blockchain cloud service, together with BlockApps.
As per a previous BCTech Report, the banking giant also led a funding round raising $32 million for a major investment in enterprise blockchain startup Axoni, that is currently transferring some of the largest financial infrastructures in the world to its Ethereum-based blockchain technology.