DealBook reports that Coinbase, a startup that aims to help bitcoin and other virtual currencies gain acceptance, raised $25 million in financing.
DealBook reports that “A steady stream of Silicon Valley investors has been building stakes in virtual currency start-ups. Last month, a Chinese Bitcoin exchange raised $5 million from Lightspeed Venture Partners. Google’s venture capital arm has put money into a couple of companies in the space, Buttercoin and Ripple Labs. Coinbase has also attracted money from Union Square Ventures and Ribbit Capital.
Bitcoin, created by anonymous programmers in 2009, is a digital currency produced by a network of users competing against one another to solve computer problems, a method known as “mining.” The open-source program that created it determined that only 21 million coins would ever be created, leading to a speculative boom that pushed the price of one Bitcoin to more than $1,000 recently from around $200 at the start of November.
The Bradshaw Law Group assists startup companies raise capital through private placements of securities as well as performs due diligence and fraud reviews for investors who want to invest in private companies.