Goldman Sachs has decided to expand its blockchain-based portfolio. As a result, it has invested $ 25 million in blockchain-based payment start-up by the name of the Veem. This is a clear testament to the fact that Goldman Sachs is actually bullish on the blockchain technology. With the increasing investments in the blockchain technology field, it is becoming easier for the start-ups to gain funding for their respective products.
Goldman Sachs invests $ 25 million in Veem:
The sole aim of the Veem is to ensure that it is able to provide an interface to the small businesses to accept payments using cryptocurrencies. The platform which will help them in doing so will be dependent on the blockchain technology. Goldman Sachs is not the only marquee name investors in this funding wrong. There are many other investors like Pantera Capital and GV who have invested in Veem in this funding round.
Goldman Sachs has used its Principal Strategic Investment Group in order to invest in Veem. Also, a managing director of Goldman Sachs will be sitting on the board of Veem as well. He will have a non-voting position. This clearly indicates that Goldman Sachs is actually pretty serious about this start-up Veem.
Veem has raised this round in order to ensure that it is able to automate its platform. Moreover, it will be enhancing the security features and making the platform much more compliant with the various rules and regulations. As a result, it will become easier for Veem to comply with the new regulatory framework. Also, with increased automation, it will be able to make the platform user-friendly as well. As a result, more and more businesses will be able to easily use the Veem platform. Thus, the traction of the platform can be increased as well.
As of now, Veem uses Bitcoin (BTC) as the cryptocurrency which allows the clients to connect with the suppliers. Veem is not a completely new business. It already serves over 80,000 small businesses. These 80,000 small businesses are spread across 96 different countries. Due to this very reason, Veem has not had any difficulty in finding marquee name investors in order to raise more money. This is also one of the main reasons why Goldman Sachs was keen on investing in the start-up. As it has already proven its business model, the probability of Scaling up is pretty high as well.
It remains to be seen what are the future investments by Goldman Sachs in the blockchain space. For now, however, it seems like it is pretty serious about Veem and it will indeed be able to mentor it to become a significant player in the cryptocurrency space. With other marquee name investors on the board as well, it should not be difficult for Veem to increase the number of businesses which it is serving.