With cryptocurrencies going mainstream in the past year, many companies are looking to launch products in the nascent asset class. Bitcoin brokerage startup River Financial has raised $17.3 million in equity sales, according to a filing submitted to the U.S Securities and Exchange Commission (SEC) on Thursday.
River Financial Wants To Serve Its Clients Better
The document sent to the SEC revealed that River Financial intends to raise an additional $500,000. This puts the total funding at $17.8 million. The firm said 34 investors were involved in the latest round, but declined to name them.
Last July, the crypto brokerage raised $5.7 million in an investment round in which prominent venture capital firms Castle Island Ventures and Slow Ventures were participants.
An equity sale is a way a company raises capital through the sale of its common shares. This is done if the company is looking to raise much-needed cash for short-term needs like bill payments and salaries or longer-termed projects like expansion and growth. An equity sale lets a company keep its assets and maintain its market valuation.
River Financial submitted its filing to the SEC as per regulatory guidelines. The first sale of the round was noted to have been on Jan. 28, 2021.
Bitcoin For Baby Boomers
The San Francisco-based brokerage firm has been active in the crypto space since its inception in 2019. The Bitcoin brokerage’s bellwether product has attracted many high-value retail investors to the new crypto entrée. The 16 member team of Bitcoin enthusiasts have been able to carve a place for themselves in a short time. It currently offers its services in 32 states and will expand into New York in early 2021.
River Financial is also looking to compete in the burgeoning crypto business and will likely use the $17.3 million investment to bolster its staffing. As announced on its website, the bitcoin-only brokerage is looking to hire experts in areas such as compliance, client acquisition and retention, and iOS engineering.
Last year, River Financial revealed that investors over the age of 55 were driving huge volumes on its platform. The company’s CEO Alex Leishman attributes the attraction for these “Bitcoin Boomers” to statements attributed to respected wall street veterans like Paul Tudor Jones.
River Financial recently launched an iOS mobile app for boomers interested in the crypto market. The mobile platform is targeted at investors aged 50 and above, providing them with adequate exposure to Bitcoin from the comfort of their homes. The mobile app leverages iOS security features like face ID and fingerprint technology and targets more sophisticated investors.