Goldman Sachs-Backed Circle Seeks $250M In Funding

Editorial & Review Staff

Editorial & Review Staff

Editorial & Review Staff articles have been checked and revised.

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Cryptocurrency startup Circle Internet Financial Ltd, which is backed by Goldman Sachs, is seeking to raise about $250 million in equity and debt, according to a report by technology news website The Information.

The report, quoting Circle’s co-founder Jeremy Allaire, said the company’s revenue grew between 2017 and 2018 despite the fall in crypto prices. The crypto company generates revenue from trading fees on its cryptocurrency exchange Poloniex and institutional trading operation Circle Trade.

Circle has seen a decrease in its proceeds due to weakening trading volumes amid the overall crypto market crash.

The Goldman Sachs-backed firm also provide an over-the-counter (OTC) trading service for cryptocurrencies to its institutional clients through its Circle Invest app.

Circle in its website noted that it is currently backed by $140 million in venture capital from investors including Goldman Sachs, IDG Capital Partners, Breyer Capital, Accel Partners, General Catalyst Partners, and Baidu, among others.

Meanwhile, The Information reported that the financial technology startup has raised $246 million to date from investors. The company was reportedly valued at nearly $3 billion last year.

In January, there were reports that that the over-the-counter crypto trading desk at Circle Trade had a notional volume of $24 billion in 2018.

To survive the wrath of the “crypto winter” many crypto-based businesses are opting to raise funds with a lower valuation. However, the publication could not reveal Circle’s estimated valuation with the target funding.

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