Octopus leads $2m seed round in London Bitcoin storage vault Elliptic
Funding in Seedcamp-alumni marks first UK institutional investment into Bitcoin services
Elliptic, a London-based digital asset services company, has announced today that it has closed a $2m seed round led by venture firm Octopus Investments to develop its first product; the “world’s first ever” insured Bitcoin storage vault.
The deal, which also saw involvement from a number of angel investors, is the first UK institutional investment into the Bitcoin market and is said to reflect growing legitimisation of digital currencies.
Launched in January 2014 out of European incubator Seedcamp, Elliptic offers a range of services which look to “bridge the gap” between traditional finance methods and digital assets.
Its signature product, the Ellipic Vault, is targeted at businesses and financial organisations looking for “the highest levels” of protection for their digital assets as the vault combines physical and cryptographic security.
The “milestone” investment will be used to grow its customer base and further encourage companies, such as hedge funds and legal firms, to adopt the Elliptic Vault having recently signed Jersey-based Global Advisors Bitcoin Investment Fund to its Bitcoin service.
The funding marks a rising demand for Bitcoin currency, a trend which Startups identified in its feature on Tech trends that will disrupt business in 2014.
Elliptic chief executive, Dr James Smith, said: “We at Elliptic believe that the future of finance lies in digital assets, and as such it is essential that we work to both legitimise and protect the likes of Bitcoin.
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But digital currencies are just the start – the block chain technology behind Bitcoin has the potential to revolutionise a wide range of industries.”
Rebecca Marshall, member of the ventures team at Octopus, added:
“There has been much discussion of late around Bitcoin and the need to establish and encourage industry best-practices around digital assets.
“Financial service regulation will play an important role in the development of digital currencies – just last week the European Banking Authority released a report advising that banks should not themselves hold digital currencies directly – and we were impressed with the team’s active role in the Bitcoin community.”