While the digital asset industry has brought in some skeptics over the past couple years, investors are hoping that crypto startups can push traditional firms into blockchain infrastructure.
BlockApps has raised $41 million in a new funding round to continue its expansion into the enterprise blockchain space, the company's President and CEO Kieren James-Lubin exclusively told TechCrunch. This capital raise hints at the growth and integration of blockchain technology into mainstream traditional companies as they look to adapt.
Liberty City Ventures led the oversubscribed round, alongside new investors like Morgan Creek Digital, Eidetic Ventures, and Givic. Existing investors include ConsenSys, Bloccelerate, Fitz Gate Ventures, Arab Angels, Kenetic Capital, and PropelX. Including a prior financing round for $9 million, BlockApps has raised a total of $50 million to date, James-Lubin said. There is no public valuation being disclosed today.
The business focuses on developing applications on its "blockchain-as-a-service" platform, STRATO, which is compatible with Ethereum. After launching in 2015, what it aimed to solve was keeping all the benefits of blockchain technology and immutability, among other elements, James-Lubin noted.
Although blockchain technology has grown and advanced throughout the years, it is still divorced from the rest of reality, outside of the crypto world, James-Lubin noted. "It's a great moment for the blockchain sector, but it's time for all the 'boring' things going on in life today to meet blockchain technology."
The new funds will be used to add to its go-to-market strategy, grow its team, and help businesses expand in its blockchain ecosystem. It will also expand its partner program and bring in more real assets to STRATO.
Real assets include things like land, titles, receivables and "anything on a balance sheet today that we don't see reflected in the blockchain world," James-Lubin said.
"We're trying to bring that to the blockchain…there's so much opportunity when everything is on a common ledger," he said. "We see ourselves and other companies working to bridge the technology so it can be a part of the day-to-day for big companies and small companies."
In addition to providing fresh capital, Liberty City Ventures and Morgan Creek Digital will appoint representatives to join BlockApps' Board of Directors. It was not disclosed which individuals from both companies will serve on the board.
"We're going into a hyper growth phase, there's so much excitement around blockchain technology," James-Lubin said. "It feels like this is going to be an unbelievable journey this year and I feel the 'taking off' moment happening…things are moving really fast and they keep picking up."