After going through a credit review process, Bitbond allows global peer-to-peer lending and enables small businesses to raise short and long term Bitcoin loans.
Users do not need a bank account for the transaction, pay lower fees and earn higher interest as lenders, the startup explains. To lower barriers for small businesses to receive financing, Bitbond offers crypto-currency Bitcoin.
The seed funding round will be used to build a team of programmers, enhance the platform’s functionality and intensify its marketing activities.
Bitbond, which was founded in January 2013 in Berlin and launched in July 2013, has facilitated close to 200 loans with users in over 100 countries.
“Our investment in Bitbond is a great fit for our strategy to invest in marketplace models and fintech startups. We are excited to see bitcoin being applied to create an international loan marketplace,” states Pawel Chudzinski, co-founder and Managing Partner at Point Nine Capital. “The founding team has strong expertise in bitcoin, tech and finance, which played a crucial role in our investment decision.”
This is Point Nine Capital’s first investment in a Bitcoin startup and represents its confidence in the crypto-currency.