Peer-to-peer bitcoin loan market Bitbond has raised $1.2m in new funding.
The web platform, which connects lender and borrowers to facilitate the distribution of loans denominated in bitcoin, received the new funding largely from a group of angel investors, some of whom already have stakes in the startup.
The round was led by Şekip Can Gökalp, founder of Mobilike, a Turkey-based mobile ad network formed in 2009, and that was acquired last year.
Other investors include Janis Zech and Andreas Bodczek, who founded ad tech startup Fyber, and Alexander Graubner-Müller, co-founder and CEO of Germany-based online lender Kreditech.
According to Bitbond representative Chris Grundy, most of the funding will be devoted to business development and expansion. Bitbond, which is based in Berlin, has raised more than $2m to date.
Radoslav Albrecht, Bitbond’s CEO, added in a statement:
“The additional resources will help us to continue realizing our mission which is to make lending and borrowing globally accessible. We are happy to have such experienced investors supporting us on this exciting journey.”
The funding comes during a time of change for the broader bitcoin peer-to-peer lending market.
BitLendingClub announced in early December that it would, over the months ahead, begin closing down parts of its business, citing an unfriendly regulatory environment.
When reached for comment at the time, CEO Kiril Gantchev cited contacts with the Bulgarian government – and pending regulatory requirements – as the major impetus behind the site’s decision to to close. BitLendingClub is expected to completely halt services sometime in August.
Fellow P2P bitcoin market BTCJam, also citing regulatory concerns, moved to exit the US market last year.