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Ripple Receives $200 Million in Series-C Venture Capital Funding
Ripple Receives $200 Million in Series-C Venture Capital Funding

Why Does the World's 3rd Largest Cryptocurrency Need Funding & Why Didn't XRP Grow?

 

Ripple has been having a pretty big year. They have expanded their long list of partnerships even further with a strategic partnership with MoneyGram. Ripple's founder was even attended the Swiss National Bank conference several months ago with the newly appointed President of the European Central Bank. So far Ripple's team seem adamant about replacing SWIFT with their technology.

 

Ripple & Venture Capital Funding

Recently Ripple surprised some with a blog post and on Twitter.  In the announcement they declared that they have received $200 million in series-C VC funding from Tetragon, SBI holdings, & Route 66 Ventures.


"We are in a strong financial position to execute against our vision. As others in the blockchain space have slowed their growth or even shut down, we have accelerated our momentum and industry leadership throughout 2019," said Ripple CEO Brad Garlinghouse.

As per their post, the funds will go towards improving the utility of XRP & the XRP ledger. Additionally, it will be used to hire talented employees and to grow Ripple as a whole.

Seeing that XRP has a market cap of $8 Billion USD and a daily volume of $1 Billion, it is not surprising that the markets hardly reacted to the news. XRP managed to climb from $0.18 to $0.19, where it remains following the announcement.



The greater question is why did Ripple accept venture capital funding in the first place? The company has been in existence since 2012 and should be profitable. Moreover, Ripple purchased equity in MoneyGram earlier in the year amounting to $50 Million.

While $200 million isn't exactly "chump change" it isn't exactly a huge amount for a company like Ripple. An educated guess is that Ripple is making use of its venture capitalist connections for other purposes. A look into the portfolios of these venture capitalist firms was a bit revealing. They all have a massive banking portfolio. It is possible that Ripple is using these VC's for their banking connections rather than just their money.

Should Ripple manage to make the right connections in the banking world, they could reach their goal. Maybe one day in the future Ripple will be able to overtake SWIFT and get adopted by mainstream banking.

 

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Written by Jonathan Ganor

Writer & cryptocurrency aficionado

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