Online payments service provider Vogogo has raised $12.5m as part of a bought deal financing round led by prior investors Beacon Securities, Clarus Securities and Salmon Partners.
The funding brings the public company’s total fundraising to $21m since the start of 2014. Vogogo raised $8.5m in venture funding in August of last year, prior to its debut on the Toronto Stock Exchange in September.
As part of the bought financing, Beacon, Clarus and Salmon acted as the official sellers of Vogogo shares on the open market in exchange for a fee on the total proceeds.
Vogogo CEO Geoff Gordon indicated that the funds will be used by the company for key acquisitions, security deposits with banking partners and in furthering its first-mover advantage as a compliance-focused firm in the cryptocurrency space.
Gordon told CoinDesk:
“I think there are groups that are capable of doing it, but we’re clearly ahead of any potential competitors. We’re here for the long haul and we want to enable this industry with good risk management and compliance.”
Gordon suggested the funds will help “settle down” the company’s stock, which has declined from a three-month high of $3.50 per share on 10th April to a press-time total of $1.93.
Vogogo estimated it now has 20 cryptocurrency industry clients integrating with its products, with the most high-profile being exchange such as Bitstamp. However, Gordon indicated that this client pool is diversifying as the industry evolves.
“We’re just getting going with the platform, but we continue to see new groups coming to us. You still have big exchanges, but it’s now remittance services and different financial services,” he said.
Image via Vogogo