Bitbond’s Seed Round a Sign of Bitcoin’s Viability
Bitbond, a bitcoin-based peer-to-peer lending platform aiming to shake up how businesses are funded, has received some major seed funding of its own.
Bitbond has garnered the attention of venture capital firm Point Nine Capital, and this marks the firm’s first investment in a bitcoin company.
BillPay’s CEO, Nelson Holzner, also contributed to Bitbond’s seed round.
Founded by Radoslav Albrecht in January of 2013, Bitbond uses bitcoin as a means to provide businesses with funding around the world.
Following an approval processes, businesses can apply for short or long-term loans which are then fulfilled by individual lenders.
Since neither borrower nor lender requires interaction with a bank, Bitbond promises lower interest rates for borrowers, and higher returns for lenders.
Bitbond will use the funding to ramp up the hiring of programmers, improve functionality of the platform, and to better market its services.
According to Albrecht, bitcoin allows for the funding and financial inclusion of the global population. Only an estimated 20 to 30 percent of the population has access to a bank.
Bitcoin also levels the playing field.
Albrecht states, users now have “access to an international marketplace with cross-border borrowing and lending. This is not feasible with fiat currencies such as dollars or euros because transaction costs are too high and transfers take too long. Now it makes no difference if you come from a small or a large market, everybody has equal opportunities.”