Veem, a San Francisco-based startup working on a blockchain-based payment service for small businesses, has finally acquired $25 million in funding round directed by Goldman Sachs including GV (formerly Google Ventures). Also, Kleiner Perkins and Silicon Valley Bank were participating in the funding round.
As per the announcement, Veem plans to utilize the funding in order to expand its multi-rail platform which facilitates blockchain technology in order to improve its speed, security and the lowest possible fees by directly finding the best possible path for all the global fund transfers. This technology is the advanced version of the SWIFT payment system.
Marwan Forzley, CEO and Founder of Veem said, “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.”
As per Mr. Forzley, the funding round has been a success and it was the highest since it started raising funds in 2015. He stated that the round showed the size of opportunity which it some of the other companies and the crypto world.
Forzley said, “What’s important about this round, is the acknowledgment of the size of the opportunity, the size of the market, the size of the pain point that we’re solving for.”
The company has reached an amazing level. In 2015, the firm consists of only 600 clients, but now it severs 80,000 clients. This depicts how much important are these services as compared to banking services.
As per one of the analysts that talks with Financial Times, payments is the biggest sector which banks worry about the most. The Banking industry has lost the most valuable part of the market due to these startups. Karim Faris, general partner at GV and who has done investment in Veem recently said Forbes that Veem might be the first bitcoin startup to launch its ICO.
Karim Faris said, “We’re not a strategic investor. It’s definitely not a strategic thing. It’s an opportunity to create a stand-alone company and in the process make a financial return on a good exit or an IPO down the line.”
By adding the latest fund raised by Veem, it makes an overall total of $69.3 million.