Crypto Ventures Embrace as Gift Card Startup Raise Announces $63 Million Funding, Led by Haun Ventures
In a strategic move, gift card startup Raise has announced its expansion into the crypto market, appointing George Ruan, co-founder and former CEO of Honey, and Matt Maloney, founder and former CEO of GrubHub, among others, to its board. This expansion, according to Raise founder and CEO Eddie Bousis, is a bet on the future of cryptocurrency, dubbed a significant move for the company.
Bousis remains tight-lipped about the current valuation of Raise, but he is eager to leverage the power of blockchain technology to combat gift card theft and enhance security in transactions. The exact nature of the "Smart Cards" has not been disclosed, but industry trends suggest that Raise might integrate blockchain technology into their gift card platform. This could involve utilising blockchain for enhanced security and transparency, implementing smart card technology for secure storage and management of cryptocurrency or crypto-based gift cards, and allowing merchants to accept cryptocurrency as payment for gift cards.
The fundraising round, led by Haun Ventures, also attracted participation from Paper Ventures, Selini Capital, GSR, and Raj Gokal, the co-founder of the blockchain Solana. The startup's valuation is no less than its $675 million Series D valuation, according to Bousis. The expansion into crypto is not a response to the company's financial situation, but rather a strategic move, Bousis emphasised.
Reports suggest that stolen or altered gift card numbers have drained hundreds of millions of dollars from Americans, making the need for enhanced security measures more pressing than ever. Bousis believes the time is right for Raise to enter the crypto market with "Smart Cards".
The crypto-branded round has also brought new members to Raise's board, including Marco Santori, ex-Kraken chief legal officer, and Bjorn Wagner, ex-CEO of Polkadot developer Parity Technologies. The decision to enter the crypto market is seen as a strategic move by Raise, and with the fresh capital, the company plans to expand its product offering into crypto with "Smart Cards".
As Raise ventures into the crypto market, it remains to be seen how the "Smart Cards" will revolutionise the gift card industry and combat gift card theft. With the expertise of its new board members and the backing of prominent investors, Raise is poised to make a significant impact in the crypto space.
The expansion of Raise into the crypto market, with the appointment of industry experts like George Ruan and Matt Maloney, is a strategic move to leverage blockchain technology for enhanced security and transparency in gift card transactions (news, technology). The decision also marks a significant step for the company, as it aims to revolutionize the gift card industry with the introduction of Smart Cards, which could potentially involve the use of blockchain technology for cryptocurrency-based gift cards or secure storage and management of cryptocurrency (finance, technology).
