Coinbase acquires San Francisco-based startup, BlockSpring, which focuses on developing tools for data collection and storage.
Coinbase Adds More Firepower
Coinbase is establishing itself as one of the largest players in the cryptocurrency space. In 2018, it acquired multiple startups which included Earn.com, Paradex, Keystone Capital Corp, Cipher Browser and the team of Distributed Systems. The year 2019 seems to be no different as BlockSpring became the latest acquisition of Coinbase. The current valuation of Coinbase stands at $8 billion.
The acquisition was announced by BlockSpring itself on its website through an online post. The post mentioned that ‘joining Coinbase was a no-brainer.’ The exact terms and conditions are yet to be disclosed. However, according to the online post, the team of BlockSpring will continue to function as per its existing role. The new, as well as, the existing customers will continue to enjoy BlockSpring’s services, albeit the fact that it will now be managed by Coinbase.
BlockSpring is a San Francisco-based startup which focuses on the development of tools essential for collection and processing of data. It was launched in 2014 as a product which could help developers in collecting data for Application Programming Interface (API). In simple terms, it helps in making the process of pulling data from Excel and Google Sheets a lot easier.
BlockSpring claims to have more than a thousand clients for its data processing tools. It offers plans starting as cheap as $29 for its users. It helps users build lists and repositories for various purposes like marketing/sales, recruitment, reporting and so on.
It became quite popular in 2015. During this period it raised $3.5 million from its investors. The list of investors included SV Angel and Andreessen Horowitz(a16z), both of which are Coinbase investors as well. The startup is also backed by Y-Combinator, which is one of USA’s leading seed funding corporation for budding entrepreneurs.
The Catalysts for the Deal
BlockSpring and Coinbase both share common investors, which seems to have worked in favor of the former. Balaji Srinivasan, CTO of Coinbase, was one of the earliest and strongest advocates of BlockSpring. He also poured heaps of praises on BlockSpring, which was featured in BlockSpring’s funding announcements in 2015.
Also, it is worth noting that BlockSpring has recently built an integration for Coinbase into its services.
Coinbase’s Growth Spree
Coinbase has been growing at a rapid pace financially. It has always been backed by major investors since its inception. It raised $300 million last year in October, taking its tally up to $525 million. Although BlockSpring is not as huge as the $120 million acquisition of Earn.com, it is the 11th startup to be acquired by Coinbase.
The recent acquisition of Earn.com caused a major revamp in the organizational hierarchy of Coinbase. Balaji Srinivasan was instated as the company’s first CTO post the acquisition.
As Coinbase continues to expand its wings, it remains to be seen how the future of Coinbase will shape up. There are also speculations of further acquisitions later in the year which may further add fuel to the fire surrounding Coinbase’s growth.