Mirror, a startup that uses bitcoin technology to secure financial transactions, has raised $8.8 million, signaling that investors are still willing to back companies building businesses working with the virtual currency.
The funding was led by Route 66 Ventures, with existing investors including RRE Ventures, Crosslink Capital, Battery Ventures and Tim Draper -- a billionaire venture capitalist who’s been a longtime bitcoin supporter -- participating in the round. The financing brings Mirror’s total funding to $12.8 million. The company didn’t disclose a valuation.
The San Francisco-based startup uses underlying bitcoin technology -- known as the blockchain -- to create a public ledger to verify transactions. That’s used to set up contracts between people and businesses so they can trade any financial instrument. The company plans to use the investment to build out its engineering team and expand international operations, said Avish Bhama, Mirror’s chief executive officer.
While public interest in bitcoin has receded, with the digital currency’s price declining 66 percent in the past year, investors continue to see promise in using the blockchain technology to simplify and to lower the costs of financial transactions. Startups including Ripple Labs and Circle Internet Financial Ltd. have also received new funding since April.