Blockstream, which develops sidechain technology meant to improve blockchain, announced a huge $55 million Series A.
The Montreal-based company’s round was led by Horizons Ventures, AXA Strategic Ventures, and Digital Garage, with participation from existing investors including AME Cloud Ventures, Blockchain Capital, Future\Perfect Ventures, Khosla Ventures, Mosaic Ventures, and Seven Seas Venture Partners. The company will use the funding to expand its sidechain technology, expand global operations, and support new industry partnerships.
.@AXAVentures invests $55 million (Series A funding round) in @Blockstream, a leader in #blockchain technology
— AXA (@AXA) February 3, 2016
Frances Kang, project director at Horizons, will join Blockstream’s board of directors. As all three of the leading investors are either based in Asia or have offices in Asia, it’s obvious that this is one of the markets where the company is looking to expand.
“We are excited to work with Blockstream to expand their business in Japan and other Asian countries in conjunction with Digital Garage’s strategic partners in the financial sector,” said Kaoru Hayashi, group CEO of Digital Garage. “We look forward to seeing how cryptofinance and blockchain technology create new contexts for a better society.”
Blockstream has had a strong run in the past year, including launching its open-source blockchain project The Elements Project, which includes features like Confidential transactions. Blockstream also lined up the founding group of exchanges for its first commercial sidechain, Liquid. Because of its strong year, the company decided to accelerate timing for its Series A financing, with more than half of its $21 million seed investment still in the bank.
“Blockstream has the best technical team in the industry and we strongly believe in their approach of developing foundational infrastructure for various blockchain applications,” said François Robinet, Managing Partner at AXA Strategic Ventures. “We value Blockstream’s open source approach and its sidechain technology, which will allow interoperability between different chains and provide critical long-term success in this sector.”
