Celsius Looking to Raise $15 Million from BnkToTheFuture Community, Not VCs

Under normal circumstances, a FinTech startup looking to grow would solicit various venture capital (VC) firms in the hope of finding investors. This is something we’ve seen a lot of lately, such as the crypto trading platform FalconX recently raising $17 million. However, just as cryptocurrencies boast a decentralized financial network, some startups are finding ways to go around this money-raising model. Case in point: Celsius has launched a new funding round that will not include VCs but, instead, investors on the site BnkToTheFuture.

BnkToTheFuture is an online investment platform, allowing users to purchase equity in financial technology and crypto companies. So far the site has allowed 85,000 qualified investors to put nearly $850 million into FinTech funding rounds. Other crypto startups who have raised money via BnkToTheFuture include Kraken, BitFinex, and BitStamp.

Thanks to their partnership with BnkToTheFuture, qualified investors are now able to invest as little as $1,000 in Celsius. In their pitch to potential investors, Celsius notes that its platform has issued more than $6.2 billion in loans. Moreover the company has $630 million in assets and more than 106,000 currently active wallets. At press time, with 45 days remaining, the campaign has already raised $10.6 million of its $15 million goal, which puts it above its minimum goal of $10.5 million.

In a press release about the funding round, Celsius CEO Alex Mashinsky discussed the decision to raise money directly from cryptocurrency enthusiasts, saying “The crypto community is at the core of what we do. Every decision we make as a company, big and small, must go through a very simple checklist: does it benefit the community.” With that, he added, “After allowing thousands to participate in our ICO, we are proud to partner with BnkToTheFuture to enable our community to be the first to participate in our equity fundraising.” It seems that sentiment was mutual as BnkToTheFuture CEO Simon Dixon stated, “We could not wait to work with Celsius. Cryptocurrency created a new financial system for us all, BnkToTheFuture was the first Securities business in the world to support Cryptocurrency companies and Celsius is now redefining the Cryptocurrency lending and borrowing market. It’s a match made in heaven.” Dixon concluded, “We look forward to becoming a strategic investor in Celsius to build the next generation of financial products together funded by the community for the community.”

True to its name, BnkToTheFuture could very well prove revolutionary. While crowdfunding has become commonplace these days, equity crowdfunding hasn’t quite made as big a splash as some had anticipated. That said, given the enthusiasm found in the crypto community, the medium seems primed for such startups. For this reason and many others, it’s worth keeping an eye on Celsius and seeing what they do with their newfound funds.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Carbon Credit API Cloverly Joins Visa's FinTech Partner Connect 

Last year, Visa introduced the FinTech Partner Connect program to the United States, with the goal of introducing institutions to vetted startups that could help them expand their product offerings. Now, the latest company to join the program is Cloverly. Founded in 2019, Cloverly is an API for carbon credits, allowing businesses and consumers to help fight climate change. As the company points out, with the Visa partnership, Visa clients...

Prosper Announces $75 Million Growth Capital Financing

A long-admired FinTech has added some new capital to its coffers and it continues to grow after more than 15 years in business. Recently, Prosper Marketplace announced that it had closed a $75 million debt financing round. This capital came from a fund managed by Neuberger Bergman and will be used to help Prosper meet the demand for its loans, credit card, investment products, and more. According to the company,...

Small Business Saturday 2022 Drives Projected $17.9 Billion in Sales

This past weekend saw the kick-off to the holiday shopping season with Black Friday followed by Small Business Saturday. Now in its 13th year, the latter is a promotion meant to raise awareness for small local businesses and encourage consumers to support them. Now, the initial figures from this year's event have arrived. According to American Express (which actually invented the retail holiday in 2010), an estimated $17.9 billion were...