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#Blockchain Report: BTC Gets a Health Check in ‘The State of Bitcoin’

Report: BTC Gets a Health Check in “The State of Bitcoin”

Delphi Digital has taken a deep dive into bitcoin core in its first “The State of Bitcoin” report. The 59-page document from the digital asset investment company leaves no stone unturned, covering everything from BTC payments to coin distribution and rolling returns compared to stocks and gold. The report brings together a plethora of interesting statistics that attest to bitcoin’s growing evolution and adoption.

Also read: Fundraiser Aims to Raise $1M in Cryptocurrencies for Venezuelans

Better Understanding Bitcoin

Few people, save for a handful of terminal haters and discredited economists, dispute that Bitcoin is valuable. But quite where that value lies, and what the primary purpose of Satoshi’s creation should be, is a matter of some dispute. “In its current state, BTC is easier to dismiss than understand,” acknowledge the authors of The State of Bitcoin. “We believe the primary long-term value drivers for BTC revolve around its ability to serve as 1) a censorship-resistant store of value and 2) a ‘check’ on governments as an alternative, country-agnostic digital reserve currency.”

Report: BTC Gets a Health Check in ‘The State of Bitcoin’The report itself offers something for everyone, addressing BTC’s current deployment as both a medium of exchange and a store of value. Delphi Digital devotes particular attention to charting BTC’s progress in the countries that need it most – inflation-hit Argentina and Venezuela. Here, as well as in regions where many of the world’s unbanked can be found – primarily Africa – cryptocurrencies have huge potential. The report identifies three primary drivers behind BTC adoption in these countries:

  • As an alternative to local currencies suffering from high or hyperinflation
  • Allowing citizens to hold their wealth directly, rather than trust a local bank
  • To improve the speed and reduce transaction fees of sending remittances

Report: BTC Gets a Health Check in ‘The State of Bitcoin’The average cost of remittance for sending $200 is as high as $36 between South Africa and Botswana, for example, showing significant scope for cryptocurrencies to provide a low-cost alternative. But BTC’s use cases don’t end there. “In the past, when high inflation took hold in a person’s country, there was little that they could do except watch as their purchasing power evaporated,” continues the report. Now, “any person with internet access has the option to insulate themselves from local currency risk by switching to [BTC]. Essentially, bitcoin can offer a check on government power and policy while providing a vital safe haven for people from all around the world.”

Divining Trends Through UTXO Analysis

Examining unspent transaction outputs (UTXOs) offers up clues as to the market cycle that BTC is currently enduring, and hints at what may come next. Delphi Digital has used a green line to represent UTXOs that are at least a year old – i.e. coins that haven’t been spent in over a year. Monitoring the percentage of 1yr+ UTXOs, as part of BTC’s entire UTXO set, shows when bitcoin holders begin to move their coins once more, be it to sell, trade, or purchase goods and services. “In the second half of 2018, the 1-Year UTXO band began exhibiting a positive growth trajectory directly in tandem with the 1-2 Year band as older UTXO bands remain flat,” reads the report. “We believe we are in the midst of an accumulation process taking similar to the one in the 2nd half of 2014.”

Report: BTC Gets a Health Check in ‘The State of Bitcoin’
The black line represents the price of BTC on a logarithmic scale and the green line shows the percent of bitcoin UTXOs that have not been used in a transaction in at least a year

For those searching desperately for signs of a market recovery, one of the key takeaways from the report, based primarily on UTXO analysis, is that “Bitcoin may face additional selling pressure in the near-term, but we believe prices will bottom in Q1 2019 based on our analysis of holder dynamics during prior boom-bust cycles.”

From Banks to the Unbanked, Bitcoin Is for Everyone

Much of Bitcoin’s beauty lies in the fact that it can be many things to many people. While it can provide a lifeline to citizens suffering from hyperinflation or prone to having their assets seized by despotic governments, BTC can be equally valuable to governments themselves, central banks, and the so-called one percent. “There is a case to be made for central banks to hold a small portion of bitcoin in their reserves as a complement to gold if it matures into an accepted store of value,” ventures the report. It continues:

If the ~$1.4 trillion of gold reserves held by central banks grows at a similarly modest 2% rate per year, the expected value of bitcoin would be roughly $10,000 assuming a 25% chance it captures half the total value of future gold reserves … The upside potential for bitcoin is immense assuming it captures even a modest portion of the total assets held in offshore bank accounts, the investible gold market, and central bank gold reserves.

While it’s easy to speculate future use cases and users of bitcoin, what’s indisputable is that BTC is unlike any monetary system that’s gone before. Even now, 10 years on from the Bitcoin whitepaper, new applications for BTC are being discovered. It would take a brave soul to bet against bitcoin being worth more and transacted more 10 years from now.

Do you think it’s likely that BTC will start to recover from Q1 of 2019? Let us know in the comments section below.


Images courtesy of Shutterstock and Delphi Digital


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#Blockchain Crypto-Focused VCs Invest $30 Million in Digital Banking App

Crypto-Focused VCs Invest $30 Million in Digital Banking App

Good Money, a digital banking startup, has announced it’s raised $30 million in Series A funding. The round was led by Galaxy Digital with investments from Breyer Capital, Blocktower Capital, Boost VC, Ken Howery, Blockchange Ventures, Cross Culture Ventures, Troy Carter, Mitch Kapor, Peter Diamandis, Blake Mycoskie, Justin Rosenstein and others.

Also Read: Law Professor: Confusing Crypto Regulations Will Hamper Innovation

Banking With a Social Focus

Crypto-Focused VCs Invest $30 Million in Digital Banking AppBesides peer-to-peer banking services, Good Money will offer FDIC-insured savings accounts bearing a 2 percent yield, free usage of fiat ATMs across the U.S., no-overdraft fees and low consumer loan rates. However, it seems that the people behind the venture believe a strong social focus is what will attract the most interest in the app. They promise that Good Money users will be able to direct 50 percent of the platform’s profits to projects focused on fixing environmental, social and economic inequality issues. The company’s founding team has also pledged half of their own equity to philanthropy.

“The combination of an activist brand with deep direct-to-consumer experience at scale, positions Good Money to be a leader in the historic disruption of the banking industry … Good Money is led by world-class founders who have built billion dollar companies, with marketing experience and relationships that can bring tens-of-millions of users into the ecosystem quickly,” said Sam Englebardt of Galaxy Digital.

Putting Equity in Clients’ hands

Crypto-Focused VCs Invest $30 Million in Digital Banking AppGood Money plans to launch a waiting list in January 2019 and reward users with equity for securing their place in line for the full platform which will be released later in the year. Every customer will receive equity when they open an account and thus become an owner of the banking platform and users may earn additional equity by installing the app, setting up a direct deposit or referring friends.

The startup is headed by Gunnar Lovelace, the founder of Thrive Market, an online grocery that previously raised $180 million in funding.

“Modern banking is a primary driver of so many issues we face as a society — from economic inequality, institutional racism, environmental destruction to political corruption,” said Lovelace. “We founded Good Money to help consumers take their money out of a system that’s both destroying the planet and extracting wealth from the most vulnerable and put it into a new system focused solely on benefiting people and planet. As we scale Good Money over the next 10 years, we will empower consumers to realize they should own the businesses they buy from as an evolutionary step in improving capitalism by leveling the economic playing field.”

Is a strong social focus the right approach to attract young people to the digital ecosystem? Share your thoughts in the comments section below.


Images courtesy of Shutterstock, Good Money.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

The post Crypto-Focused VCs Invest $30 Million in Digital Banking App appeared first on Bitcoin News.

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#USA Capture lets you grab real 3D models with your iPhone X’s powerful camera

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Three dimensional modeling used to be hard. It used to require something at least as big as the Xbox Kinect to get really high quality scans you needed high-powered laser sensor systems. Now all you need is your phone and Capture.

Capture is a proof-of-concept for a company called Standard Cyborg led by Jeff Huber and Garrett Spiegel. These YCombinator grads have worked in a number of high-profile vision startups and raised $2.4 million in seed from folks like Scott Banister, Trevor Blackwell, and Jeff Huber.

They launched the app on December 3 and it’s already making 3D waves. The tool, which uses the iPhone X’s front camera and laser scanning system to create a live color point cloud, can create 3D models that you can view inside the app or in an AR setting. You can also export them into a USDZ file for use elsewhere. The app is actually a Trojan horse for the company’s other applications including a programming framework for 3D scanning.

“We are at the bleeding edge – deploying 3D dense reconstruction and point cloud deep learning on mobile devices,” said Huber. “We package up this core technology for developers, abstracting away all the math and GPU acceleration, and giving them superpowers in just 3 lines of code.”

I’ve tried the app a few times and the resulting scans are still a little iffy. You have to take special care to slowly scan all facets of an object and if you move, as you see below, you end up with two noses. That said it’s an amazingly cool use of the iPhone’s powerful front-facing sensors.

“Standard Cyborg is building the API for the physical world,” said Huber. “We make it easy for developers to build 3D scanning, analysis, and design into their applications. Our Capture app is a showcase of our technology that makes it easy for anyone with a FaceID-enabled iPhone to play with the technology and share scans with their friends. Our scanning SDK is launching in January and is currently in beta with a few enterprise-level sporting goods companies.”

While you won’t be scanning your loved ones into a TRON remake with this thing just yet it’s cool to think about how far we’ve come from flailing around in our living rooms with a clunky Kinect next to our TV.

from Startups – TechCrunch https://ift.tt/2Gd4lhT

#USA Capture lets you grab real 3D models with your iPhone X’s powerful camera

//

Three dimensional modeling used to be hard. It used to require something at least as big as the Xbox Kinect to get really high quality scans you needed high-powered laser sensor systems. Now all you need is your phone and Capture.

Capture is a proof-of-concept for a company called Standard Cyborg led by Jeff Huber and Garrett Spiegel. These YCombinator grads have worked in a number of high-profile vision startups and raised $2.4 million in seed from folks like Scott Banister, Trevor Blackwell, and Jeff Huber.

They launched the app on December 3 and it’s already making 3D waves. The tool, which uses the iPhone X’s front camera and laser scanning system to create a live color point cloud, can create 3D models that you can view inside the app or in an AR setting. You can also export them into a USDZ file for use elsewhere. The app is actually a Trojan horse for the company’s other applications including a programming framework for 3D scanning.

“We are at the bleeding edge – deploying 3D dense reconstruction and point cloud deep learning on mobile devices,” said Huber. “We package up this core technology for developers, abstracting away all the math and GPU acceleration, and giving them superpowers in just 3 lines of code.”

I’ve tried the app a few times and the resulting scans are still a little iffy. You have to take special care to slowly scan all facets of an object and if you move, as you see below, you end up with two noses. That said it’s an amazingly cool use of the iPhone’s powerful front-facing sensors.

“Standard Cyborg is building the API for the physical world,” said Huber. “We make it easy for developers to build 3D scanning, analysis, and design into their applications. Our Capture app is a showcase of our technology that makes it easy for anyone with a FaceID-enabled iPhone to play with the technology and share scans with their friends. Our scanning SDK is launching in January and is currently in beta with a few enterprise-level sporting goods companies.”

While you won’t be scanning your loved ones into a TRON remake with this thing just yet it’s cool to think about how far we’ve come from flailing around in our living rooms with a clunky Kinect next to our TV.

from Startups – TechCrunch https://ift.tt/2Gd4lhT

#USA Capture lets you grab real 3D models with your iPhone X’s powerful camera

//

Three dimensional modeling used to be hard. It used to require something at least as big as the Xbox Kinect to get really high quality scans you needed high-powered laser sensor systems. Now all you need is your phone and Capture.

Capture is a proof-of-concept for a company called Standard Cyborg led by Jeff Huber and Garrett Spiegel. These YCombinator grads have worked in a number of high-profile vision startups and raised $2.4 million in seed from folks like Scott Banister, Trevor Blackwell, and Jeff Huber.

They launched the app on December 3 and it’s already making 3D waves. The tool, which uses the iPhone X’s front camera and laser scanning system to create a live color point cloud, can create 3D models that you can view inside the app or in an AR setting. You can also export them into a USDZ file for use elsewhere. The app is actually a Trojan horse for the company’s other applications including a programming framework for 3D scanning.

“We are at the bleeding edge – deploying 3D dense reconstruction and point cloud deep learning on mobile devices,” said Huber. “We package up this core technology for developers, abstracting away all the math and GPU acceleration, and giving them superpowers in just 3 lines of code.”

I’ve tried the app a few times and the resulting scans are still a little iffy. You have to take special care to slowly scan all facets of an object and if you move, as you see below, you end up with two noses. That said it’s an amazingly cool use of the iPhone’s powerful front-facing sensors.

“Standard Cyborg is building the API for the physical world,” said Huber. “We make it easy for developers to build 3D scanning, analysis, and design into their applications. Our Capture app is a showcase of our technology that makes it easy for anyone with a FaceID-enabled iPhone to play with the technology and share scans with their friends. Our scanning SDK is launching in January and is currently in beta with a few enterprise-level sporting goods companies.”

While you won’t be scanning your loved ones into a TRON remake with this thing just yet it’s cool to think about how far we’ve come from flailing around in our living rooms with a clunky Kinect next to our TV.

from Startups – TechCrunch https://ift.tt/2Gd4lhT

#USA Capture lets you grab real 3D models with your iPhone X’s powerful camera

//

Three dimensional modeling used to be hard. It used to require something at least as big as the Xbox Kinect to get really high quality scans you needed high-powered laser sensor systems. Now all you need is your phone and Capture.

Capture is a proof-of-concept for a company called Standard Cyborg led by Jeff Huber and Garrett Spiegel. These YCombinator grads have worked in a number of high-profile vision startups and raised $2.4 million in seed from folks like Scott Banister, Trevor Blackwell, and Jeff Huber.

They launched the app on December 3 and it’s already making 3D waves. The tool, which uses the iPhone X’s front camera and laser scanning system to create a live color point cloud, can create 3D models that you can view inside the app or in an AR setting. You can also export them into a USDZ file for use elsewhere. The app is actually a Trojan horse for the company’s other applications including a programming framework for 3D scanning.

“We are at the bleeding edge – deploying 3D dense reconstruction and point cloud deep learning on mobile devices,” said Huber. “We package up this core technology for developers, abstracting away all the math and GPU acceleration, and giving them superpowers in just 3 lines of code.”

I’ve tried the app a few times and the resulting scans are still a little iffy. You have to take special care to slowly scan all facets of an object and if you move, as you see below, you end up with two noses. That said it’s an amazingly cool use of the iPhone’s powerful front-facing sensors.

“Standard Cyborg is building the API for the physical world,” said Huber. “We make it easy for developers to build 3D scanning, analysis, and design into their applications. Our Capture app is a showcase of our technology that makes it easy for anyone with a FaceID-enabled iPhone to play with the technology and share scans with their friends. Our scanning SDK is launching in January and is currently in beta with a few enterprise-level sporting goods companies.”

While you won’t be scanning your loved ones into a TRON remake with this thing just yet it’s cool to think about how far we’ve come from flailing around in our living rooms with a clunky Kinect next to our TV.

from Startups – TechCrunch https://ift.tt/2Gd4lhT

#USA Capture lets you grab real 3D models with your iPhone X’s powerful camera

//

Three dimensional modeling used to be hard. It used to require something at least as big as the Xbox Kinect to get really high quality scans you needed high-powered laser sensor systems. Now all you need is your phone and Capture.

Capture is a proof-of-concept for a company called Standard Cyborg led by Jeff Huber and Garrett Spiegel. These YCombinator grads have worked in a number of high-profile vision startups and raised $2.4 million in seed from folks like Scott Banister, Trevor Blackwell, and Jeff Huber.

They launched the app on December 3 and it’s already making 3D waves. The tool, which uses the iPhone X’s front camera and laser scanning system to create a live color point cloud, can create 3D models that you can view inside the app or in an AR setting. You can also export them into a USDZ file for use elsewhere. The app is actually a Trojan horse for the company’s other applications including a programming framework for 3D scanning.

“We are at the bleeding edge – deploying 3D dense reconstruction and point cloud deep learning on mobile devices,” said Huber. “We package up this core technology for developers, abstracting away all the math and GPU acceleration, and giving them superpowers in just 3 lines of code.”

I’ve tried the app a few times and the resulting scans are still a little iffy. You have to take special care to slowly scan all facets of an object and if you move, as you see below, you end up with two noses. That said it’s an amazingly cool use of the iPhone’s powerful front-facing sensors.

“Standard Cyborg is building the API for the physical world,” said Huber. “We make it easy for developers to build 3D scanning, analysis, and design into their applications. Our Capture app is a showcase of our technology that makes it easy for anyone with a FaceID-enabled iPhone to play with the technology and share scans with their friends. Our scanning SDK is launching in January and is currently in beta with a few enterprise-level sporting goods companies.”

While you won’t be scanning your loved ones into a TRON remake with this thing just yet it’s cool to think about how far we’ve come from flailing around in our living rooms with a clunky Kinect next to our TV.

from Startups – TechCrunch https://ift.tt/2Gd4lhT

#USA InVision, valued at $1.9 billion, picks up $115 million Series F

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“The screen is becoming the most important place in the world,” says InVision CEO and founder Clark Valberg . In fact, it’s hard to get through a conversation with him without hearing it. And, considering that his company has grown to $100 million in annual recurring revenue, he has reason to believe his own affirmation.

InVision, the startup looking to be the Salesforce of design, has officially achieved unicorn status with the close of a $115 million Series F round, bringing the company’s total funding to $350 million. This deal values InVision at $1.9 billion, which is nearly double its valuation as of mid-2017 on the heels of its $100 million Series E financing.

Spark Capital led the round with participation from Goldman Sachs, as well as existing investors Battery Ventures, ICONIQ Capital, Tiger Global Management, FirstMark and Geodesic Capital. Atlassian also participated in the round. Earlier this year, Atlassian and InVision built out much deeper integrations, allowing Jira, Confluence and Trello users to instantly collaborate via InVision.

As part of the deal, Spark Capital’s Megan Quinn will be joining the board alongside existing board members, Amish Jani, Vas Natarajan, Simon Nebel, Lee Fixel, and Mark Hastings.

InVision started out back in 2011 as a simple prototyping tool. It let designers build out their experience without asking the engineering/dev team to actually build it, to then send to the engineering and product and marketing and executive teams for collaboration and/or approval.

Over the years, the company has stretched its efforts both up and downstream in the process, building out a full collaboration suite called InVision Cloud (so that every member of the organization can be involved in the design process), Studio, a design platform meant to take on the likes of Adobe and Sketch, and InVision Design System Manager, where design teams can manage their assets and best practices from one place.

But perhaps more impressive than InVision’s ability to build design products for designers is its ability to attract users that aren’t designers.

“Originally, I don’t think we appreciated how much the freemium model acted as a fly wheel internally within an organization,” said Megan Quinn. “Those designers weren’t just inviting designers from their own team or other teams, but PMs and Marketing and Customer Service and executives to collaborate and approve the designs. From the outside, InVision looks like a design company. But really, they start with the designer as a core customer and spread virally within an organization to serve a multitude.”

InVision has simply dominated prototyping and collaboration, today announcing it has surpassed 5 million users. What’s more, InVision has a wide variety of customers. The startup has a long and impressive list of digital first customers — including Netflix, Uber, Airbnb and Twitter — but also serves 97 percent of the Fortune 100, with customers like Adidas, General Electric, NASA, IKEA, Starbucks, and Toyota.

Part of that can be attributed to the quality of the products, but the fundamental shift to digital (as predicted by Valberg) is most certainly under way. Whether brands like it or not, customers are interacting with them more and more from behind a screen, and digital customer experience is becoming more and more important to all companies.

In fact, a McKinsey study showed that companies that are in the top quartile scores of the McKinsey Design Index outperformed their counterparts in both revenues and total returns to shareholders by as much as a factor of two.

But as with any transition, some folks are adverse to change. Valberg identifies industry education and evangelism as two big challenges for InVision.

“Organizations are not quick to change on things like design, which is why we’ve built out a Design Transformation Team,” said Valberg. “The team goes in and gets hands on with brands to help them with new practices and to achieve design maturity within the organization.”

With a fresh $115 million and 5 million users, InVision has just about everything it needs to step into a new tier of competition. Even amongst behemoths like Adobe, which pulled in $2.29 billion in revenue in Q3 alone, InVision has provided products that can both compliment and compete.

But Quinn believes that the future of InVision rests on execution.

“As with most companies, the biggest challenge will be continued excellence in execution,” said Quinn. “InVision has all the right tail winds with the right team, a great product, and excellent customers. It’s all about building and executing ahead of where the pack is going.”

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#Blockchain The Daily: Coinbase Expands Gift Card Program, Facebook Seeks Blockchain Talent

The Daily: Coinbase Expands Gift Card Program, Facebook Seeks Blockchain Talent

In Tuesday’s edition of The Daily we cover stories about an electronic gift card program that Coinbase is extending to the U.S. market, new job offerings from Facebook that hint at the company’s blockchain plans, and an investment in the field from Unicef.

Also Read: US Law Professor: Confusing Cryptocurrency Regulations Will Hamper Innovation

Coinbase Extends Wegift Partnership to the US

The Daily: Coinbase Expands Gift Card Program, Facebook Seeks Blockchain TalentCoinbase has announced that its trading platform now offers e-gift cards for its customers in the U.S. This means that American users will be able to instantly spend their cryptocurrency balances from the exchange with dozens of new retailers. The development has been achieved by expanding its partnership with the London-based startup Wegift, which supports many well-known brands such as Nike, Tesco, Uber, Google Play, Ticketmaster and Zalando.

Coinbase informed its users that purchasing e-gift cards incurs no withdrawal fees and that bonuses of up to 10 percent make it “smoother than ever to use crypto. Now, you’re just a few clicks away from spending your balance on e-gifts cards for Adidas shoes or your next vacation. Better yet, use some on the holidays — you’re just in time.”

Facebook to Develop Equitable Financial Services?

At the start of 2018, Facebook founder Mark Zuckerberg set a goal for himself to take back power from centralized systems using “encryption and cryptocurrency.” While the year is nearly over and this resolution remains unfulfilled, his company appears to still be focused on the subject. Recently surfaced ads show that Facebook is looking for data scientists and software engineers to help develop new blockchain solutions, possibly including financial services.

The Daily: Coinbase Expands Gift Card Program, Facebook Seeks Blockchain Talent

The company explains to potential candidates that: “At Facebook, we have established a new team building blockchain technologies. It’s a small, fast-growing, but talented group of people who are passionate about changing the world. Our leadership is experienced and are some of the best people working today in their respective fields.”

“The blockchain team is a startup within Facebook, with a vision to make blockchain technology work at Facebook scale. We’re exploring areas of interest across all facets of blockchain technology. Our ultimate goal is to help billions of people with access to things they don’t have now – that could be things like equitable financial services, new ways to save, or new ways to share information.”

Unicef Invests in Six Blockchain Startups

The Daily: Coinbase Expands Gift Card Program, Facebook Seeks Blockchain TalentThe United Nations Children’s Fund (Unicef) has announced that it will provide backing to six blockchain startups from emerging economies trying to solve global challenges using the technology. The Unicef Innovation Fund will invest up to $100,000 in Atix Labs from Argentina, Onesmart and Prescrypto from Mexico, India’s Statwig, Utopixar from Tunisia and W3 Engineers from Bangladesh. The financial support is meant to help the companies deliver open-source prototypes of blockchain applications within 12 months.

“Blockchain technology is still at an early stage — and there is a great deal of experimentation, failure, and learning ahead of us as we see how, and where, we can use this technology to create a better world,” said Chris Fabian, Principal Adviser at the fund. “That’s exactly the stage when UNICEF Innovation Fund invests: when our financing, technical support, and focus on vulnerable populations can help a technology grow and mature in the most fair and equitable way possible.”

What do you think about today’s news tidbits? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

The post The Daily: Coinbase Expands Gift Card Program, Facebook Seeks Blockchain Talent appeared first on Bitcoin News.

from Bitcoin News https://ift.tt/2SFdRvn The Daily: Coinbase Expands Gift Card Program, Facebook Seeks Blockchain Talent

#USA Vroom nabs $146M from AutoNation, VCs for its used car marketplace

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Vroom has raised $146 million in Series G funding, an expansion to a $30 million investment we reported in early September. U.S. automotive retailer AutoNation led the round for the startup, with participation from existing investors T. Rowe Price, L Catterton, General Catalyst and Fraser McCombs Capital.

The company declined to disclose the valuation, but says it was an up round. Vroom was valued at $440 million in 2016 with a $50 million financing, according to PitchBook.

Led by chief executive officer Paul Hennessy, the former CEO of Priceline.com, Vroom is an online platform for buying and selling refurbished, pre-owned cars. The company purchases used vehicles, then includes them in its online catalog, which currently lists just over 3,200 cars. Once it finds a buyer, it provides financing support through a number of lending partners, including CapitalOne and Ally, and delivers the vehicle directly to customers’ doorsteps in the U.S. To date, the company says it has sold 250,000 cars.

Founded in 2013, the company has raised $440 million in equity funding to date, but it hasn’t all been smooth sailing. Earlier this year, Vroom laid off roughly 30 percent of its staff after a futile attempt at building brick-and-mortar car dealerships. As a result, Vroom shut down its Dallas dealership, which was where most of the layoffs occurred, Hennessy said. Its Houston dealership is the only in-person effort still up and running.

“Clearly our investors were supportive of the strategic steps we took,” Hennessy told TechCrunch.

Since the layoffs, Vroom has been focused on building out its leadership team. Dave Jones, who spent over a decade at Penske Automotive Group, joined as the company’s chief financial officer; Mitch Berg, who was most recently the senior vice president of technology at dailymotion, was brought on as chief technology officer; and Dennis Looney, a veteran in supply chain management, was tapped as chief supply chain officer. 

The infusion of capital is necessary for the five-year-old business, which operates in a capital-intensive industry. Carvana, perhaps its largest competitor in the space, raised $300 million in equity funding and hundreds of millions in debt before going public in 2017. Auto1, a German car trading platform, has raised more than $1 billion, including a significant investment from SoftBank’s Vision Fund earlier this year.

Other digitally native vehicle retailers have fallen on hard times despite venture backing. British startups Hellocar and Carspring both shut down in 2017, and Beepi, a Silicon Valley peer-to-peer used car marketplace, brought in $150 million in VC backing before going out of business last year. Vroom acquired some of Beepi’s software as the company went under.

Vroom’s decision to halt the operations of its physical dealership looks to have satisfied investors, but whether it’s built a sustainable business that can operate without a consistent influx of VC support remains to be seen.

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