Long Beach-based technology platform creator iTrustCapital Inc. has secured a $125 million Series A capital raise for its Crypto IRA software platform, the company announced on January 19, with a post-funding valuation exceeding $1.3 billion.
Already the world’s largest platform for buying and selling cryptocurrencies through individual retirement accounts, the company has grown from $2 billion in total trading volume to $4.5 billion over the course of of the last six months.
Kevin Maloney, senior vice president of investor relations at iTrustCapital, said the company plans to use the proceeds to expand its product and service offerings, scale its client service and development teams, explore strategic acquisitions and launch new marketing channels.
“We’ll do it right from the start and deploy capital carefully, expanding our products, expanding our team – we want to double our technology team […] But the biggest chunk would be for marketing,” Maloney said.
Marketing through YouTube influencers has helped attract about a third of the company’s active user base, Maloney said, which currently sits at around 25,000. The average age of a crypto investor is between 21 and 35, but Maloney said iTrustCapital’s customer base “includes thousands of working professionals” who are older.
He compared the service to larger cryptocurrency exchanges like Coinbase Global Inc. and Gemini, with a greater emphasis on transparency and access, low fees, and an easy-to-use system. easy to use, secure and perfectly integrated. Maloney said iTrustCapital is more like a traditional broker, minus the commission fees.
“There are over $13 trillion in retirement assets in the United States, so while we realize there is great competition, there is more than enough to serve everyone,” Maloney said.
Maloney said the company, which was co-founded by company chairman Blake Skadron, started with just $1.3 million in total seed capital raised from friends and family in 2018. The first the year the service launched in 2019, the company made about $14,000 in revenue, Maloney said. In 2020, that figure rose to $3 million, and in 2021, it rose to just under $50 million in revenue. The jump in activity was largely attributable to the explosive growth of crypto in recent years, but Maloney said the company’s offerings have made great strides since its initial launch, largely in response to requests and to customer feedback.
“Crypto is going to play a major role in economic growth, and I think Americans are really looking forward to it,” Maloney said. “We prioritized building trust through transparency and access.”
In a statement, iTrustCapital Chief Executive Todd Southwick said the latest funding “provides us with great strength and additional credibility as we serve the tens of millions of new investors entering this booming market. expansion”.
“We launched into the industry-leading position by focusing on the best product with great customer service — and so grew organically within the crypto community,” Southwick said.
The round was led by New York-based venture capital firm Left Lane Capital, which invests in high-growth internet and consumer technology companies. Left Lane chief executive Matt Miller, who will soon join the iTrustCapital board, said iTrust serves its clients in a “tremendous, fast-growing market opportunity that traditional financial institutions don’t have. fully addressed”.
“We have been impressed with iTrustCapital’s lean and focused approach, world-class management team, significant revenue growth and strong reputation in the crypto IRA ecosystem,” Miller said in a statement accompanying the statement. funding announcement.
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