New Blockchain Startup Hit: Spring Labs Raises $15 Million In Only Four Months After Its Founding
A Los Angeles blockchain startup called Spring Labs has been calling attention in the cryptocurrency market lately for managing to secure $15 million USD in venture capital after only four months of its creation. The company aims to provide identity verification for financial institutions by using the blockchain technology.
The main investor of Spring Labs was August Capital, but there other investors too like GreatPoint Ventures, Victory Park Capital, MultiCoin Capital and Jump Capital. The amount of investments is noteworthy because not many companies are able to secure so much without even having a working product.
The company knows that it is entering a huge market, so the company’s has already stated that it has a world-class engineering team. In fact, that is why the company has been so successful. August Capital general partner Eric Carlborg states that it is the experience of the team that convinced him to invest.
The blockchain industry is in all time high and many big players are entering in this field. Because of this, the type of solution offered by this company is required for more growth and security. Spring Labs is developing solutions for financial data security, which can prevent hacks like last year’s Equifax hack, which affected nearly 150 million consumers worldwide.
The Spring Labs Star Team
The CEO and co-founder of Spring Labs is Adam Jiwan, which spent 10 years working in investment management with clients like the George Soros’ family office and TPG-Axon Capital Management. He also worked in companies like Avant, from where other co-founders John Sun and Anna Friedman came from. This is a very experienced team and mostly the reason why the company got such an easy financing.
Spring Labs Will Use the Blockchain to Prevent Single-point-of-entry Security Failures
The main goal of the company is to use the blockchain technology to create a secure data blockchain which instead of using a single point of entry will be on a distributed ledger that will be shared by companies.
The technology can also be used to make the credit process more efficient for investors and let financial institutions share data among them in a way that the identity of their clients would be protected and the companies sharing the data would be paid with cryptocurrencies.
The main difference from this company and some projects like Blood and Civic is that they are working on new ways to create blockchain-based IDs while Spring Labs’ goal is to help the banks to use the current databases that they have better.
The company’s product will be launched in 2019 and it will have its own token, of course, as this is definitely the trend of the moment. The coins will be used as a way for the companies to reward each other for the information provided.
The Spring Network will initially be a “permissioned” blockchain with only major players, but it might expand in the future. Avant will be the first company to participate in this new ecosystem.