US-based digital payments company Ripple Labs is about to close a $30m series A round backed by internet company Google’s corporate venturing arm Google Ventures, the Wall Street Journal reported yesterday.
IDG Capital Partners, a China-based venture capital fund supported by technology media company International Data Group, is also set to invest, as is VC firm Andreessen Horowitz.
Ripple previously closed a $3.5m seed round in November 2013 featuring IDG Capital, Bitcoin Opportunity Fund, Camp One Ventures, FF Angel, Core Innovation Capital, Lightspeed Venture Partners, Vast Ventures and Venture51.
Google and IDG first invested in Ripple as part of a seed round in May 2013, when the company was operating under its original name OpenCoin. OpenCoin had already received an undisclosed sum the previous month from Andreessen Horowitz, FF Angel, Lightspeed Venture Partners, Vast Ventures and Bitcoin Opportunity Fund.
Ripple has developed a decentralised digital payment system that validates transactions through a math-based currency called XRP, which is similar to Bitcoin.
The company aims its service at financial institutions – as opposed to Bitcoin which is accessible to individuals – and allows smaller banks to avoid the fees of large intermediate banks.