Business, Investments

Vogogo secures USD 8.5 million in Series B round to help ‘Cryptobusinesses’

Calgary-based startup, Vogogo that processing fiat currency (like the U.S. dollar or Canadian dollar) transactions for “cryptobusinesses,” has raised USD 8.5 million in Series B round led by Cormark Securities Inc, reports ITBusiness. The other investors Salman Partners Inc., Clarus Securities Inc., Beacon Securities Limited and Canaccord Genuity Corp were also participated in the round.

The company aims to utilize the raised funds to bring Crypto Payments to the US and European Union. The service will live in few months. It is also planning to hire developers and risk management professionals.

Vogogo accept Bitcoin, Altcoin, Namecoin, Litecoin, and all of the other kinds of cryptocurrencies. From last 10 months, it has processing USD 75 million. The banks name with which company is working, are still undisclosed.


See Also: SBI forays into online payment aggregation business

Launched in 2008, as a venture of Geoff Gordon and Rodney Thompson, a way to offer multiple online payment options. The company is backed by 5 investors and having 20 employees in its current team. It provides three tools as Vogogo: Rent, Care and Biz for for the property management industry, personal care industry and for general business. At present the company is seeing USD 6 to USD 10 million in crypto payments a month.

“We have a lot of companies building really cool software that services Bitcoin-related businesses. And they set up these businesses, but they don’t think of the fiat side, because this is a very different business than, say, if you want to sell socks online,” says Rodney Thompson, chief strategy officer and one of the co-founders of Vogogo.

“What happens is that when these cryptobusinesses want to accept fiat, the risk and fraud management tools and systems and expertise they need to handle fiat is typically something they haven’t thought about, and it’s not something they can start building. It’s a highly regulated environment … we do all of that for them.”

Tech Crunch says: “We had been watching Bitcoin and crypto currencies closely. As a payments company we were very intrigued by the potential of Bitcoin,” said Gordon. “We watched several crypto groups enter the Canadian market, have a lot of success only to then be shut down by their bankers due to payment related fraud and/or no compliance structure. We put the Vogogo platform in front of a few crypto groups to resounding success in Canada. We are now adjusting our platform to scale these services and we will be replicating the service in the US, EU and other target markets.”

The team hopes that the investment will help legitimize bitcoin in the payments space.

“Bitcoin has a huge amount of potential but it needs interoperability with the banks and the banking system to realize that potential,” said Gordon.
More from IT Business: “If you’re running a cryptobusiness and all of a sudden, you’re trying to figure out dispute resolution, it’s a very difficult thing to learn on the fly,” Thompson says, adding it’s especially difficult for businesses that only have a handful of employees.“A lot of these cryptobusinesses can be teams of two or three people to maybe like, eight to 12. So adding a whole risk team and a payment team is a giant undertaking for these typically quite small businesses, because they can run incredibly lean and very quick.”
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