Chicago-based cryptocurrency startup Seed CX, which helps investors get the tech infrastructure to add cryptocurrencies to their portfolios and trading strategies, has raised a new round of funding to help it expand its service and staff.
The $15 million Series B round was led by Bain Capital Ventures and OKCoin, the company announced Wednesday. Seed CX now has more than $25 million in VC funding since launching in 2015. The startup’s other investors include FinTech Sandbox, 500 Startups and Struck Capital, according to Crunchbase.
The startup says it will use the new financing to broaden its network of institutional trading groups and hire new employees to put its staff at about 40 people. Seed CX, which currently employs 33 people in its Loop offices, said it will be filling positions primarily in operations, market surveillance and tech departments.
Though many institutional investors and traders have been reluctant to add cryptocurrencies to their portfolios, Seed CX aims to make it a more seamless process for them. Seed CX’s platform offers a licensed exchange for trading with operational risk safeguards and a diverse product suite that integrates with common management systems used by banks. The platform is also compliant with the industry’s existing regulations.
“The growth of digital assets as an asset class will be based on the adoption of institutional investors and professional traders, who require a trading experience that is on par with that of other instruments, such as equities and commodities,” said Seed CX Co-Founder and CEO Edward Woodford in a statement. “What is particularly exciting is that our unique offering brings large institutional traders, who have so far sat on the sidelines, into the crypto space for the first time."
Seed CX's funding comes after a slew of significant VC raises from local tech companies. Earlier this month, Chicago parking startups ParkWhiz and SpotHero raised $20 million and $10 million, respectively. Additionally, logistics startup ShipBob raised $40 million.
