According to details provided to SludgeFeed, the startup successfully raised roughly $591K on the crowdfunding platform Republic via a SAFE investment at a $5 million valuation. The crowdfund closed on March 31. The rest was raised from an angel syndicate that included Gil Penchina, an early investor in LinkedIn and Ripple, serial entrepreneur David Weisburb and an unnamed former partner at Kleiner Perkins.
Ember Fund claims to have seen more than $10 million in transaction volume in the app’s first 9 months of being available to investors. The app has 15,000 downloads to date across iOS and Android devices with an estimated $150 of revenue per user per year.
The new capital will reportedly be used to ramp-up marketing to help drive user adoption, further expanding transaction volume.
“The company is close to profitable and growing as investors diversify into crypto assets during the pandemic,” said Ember Fund CEO Alex Wang. “We will be aggressively deploying this capital on customer acquisition and building out the smart contract technology that powers the app.”
The app itself is designed to address some of the flaws associated with custodial cryptocurrency trading platforms. Namely, all transactions on the Ember Fund app are done on-chain, allowing users to retain full control over their assets. This includes investments in the platform’s managed crypto funds, which require a minimum investment of $250.
Ultimately, Ember Fund aims to lower the barrier for the average investor to profit off the volatility inherent in the crypto market by allowing one-tap rebalancing and the option to allocate capital alongside vetted experts’ portfolios.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.