Bitcoin startup Coinbase is seeking to raise another round of funding, which could add $60 million in new capital before it’s finished. According to sources, however, the company has faced headwinds in the fundraising process that may limit the total amount raised. Sources tell us Coinbase is raising $50 million of new capital less than a year after its last financing, a $25 million Series B led by Andreessen Horowitz. That’s a pretty big jump in a short period of time, and would once again make Coinbase the best-capitalized Bitcoin startup after recent $30 million funding rounds for BlockChain and BitPay.
Coinbase is rumoured to be in the midst of another funding round, attempting to raise up to $60m with a company valuation of $400m. The US-based company, which provides bitcoin wallets and merchant services, is expected to take on investment from venture capital firm DFJ and is looking to raise $40-60m, according to Re/Code. CoinDesk has contacted Coinbase, but is yet to receive a response. DFJ has declined to comment. Back in December, Coinbase raised $25m in a series B round, led by Andreessen Horowitz, bringing the total amount raised by the company to $30m. An article by TechCrunch states Coinbase is facing difficulties in raising this latest round. It reports the company was initially seeking to raise up to $150m, but this was reduced to $50m after interest waned following concerns about the volatility of bitcoin and regulatory uncertainty around digital currency. Earlier this year, Coinbase rival BitPay closed a $30m funding round, pulling in investment from Index Ventures, Yahoo founder Jerry Yang’s AME Cloud Ventures, Felicis Ventures, PayPal founder Peter Thiel’s Founders Fund, Horizons Ventures, RRE Ventures, Virgin Galactic’s Sir Richard Branson and TTV Capital.