December 9, 2024
Lava, a platform specializing in Bitcoin-backed lending, has finalized a $10 million Series A funding round. The investment was led by Khosla Ventures and Founders Fund, with the latter continuing its measured activity in the cryptocurrency sector. This marks a strategic move for Khosla Ventures, which had previously limited its involvement in blockchain ventures since its 2022 backing of Worldcoin.
The company enables Bitcoin holders to borrow cash without selling their assets, targeting individuals seeking liquidity while maintaining their cryptocurrency portfolios. Users retain control over their Bitcoin holdings through Lava's self-custody model, which aligns with the decentralized principles of the blockchain ecosystem. The lending service charges a 7.5% interest rate alongside an origination fee. Unlike earlier crypto lenders, which faced financial turmoil due to practices like rehypothecation, Lava emphasizes stability and direct asset control.
The recent funding will support Lava's plans to expand its product offerings, including payment services and Bitcoin purchasing features. The company’s all-equity Series A round highlights its strategy to avoid launching a token, a step taken by many crypto startups in the past. Lava’s approach addresses the challenges that previously plagued the crypto lending industry while focusing on user confidence and operational resilience.
About Lava
Lava is a Bitcoin lending platform designed to provide cash liquidity without requiring users to sell their cryptocurrency. Founded in New York, the company prioritizes self-custody solutions and seeks to deliver secure lending options for Bitcoin holders. Lava aims to expand its services to include payment functionalities and asset purchasing capabilities.
Website: https://www.lava.xyz/
X: @lava_xyz
About Investor
Khosla Ventures
Khosla Ventures is a venture capital firm headquartered that focuses on investments in breakthrough technologies across sectors such as finance, healthcare, and clean energy. Founded by Vinod Khosla, it has a history of backing startups with transformative potential.
Location: Menlo Park, California
Website: https://www.khoslaventures.com/ A central focus of investor activity in the cryptocurrency space is the evaluation of new crypto projects to invest in, particularly those with huge potential. This blog provides insight into what new ventures are benefiting from venture capital support (VC funding in crypto). These new crypto projects, funded by professional investors, can dictate the next narrative in crypto and the next big crypto movers.
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