Google Ventures invests in Bitcoin competitor OpenCoin

Google Ventures and China-based IDG Capital Partners place a bet on OpenCoin, the company behind Bitcoin exchange Ripple.

AccessTimeIconMay 14, 2013 at 6:38 p.m. UTC
Updated Dec 10, 2022 at 8:01 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Google Ventures and China-based IDG Capital Partners are the second group of tech investors in two months to place a bet on OpenCoin, the company behind the currently-in-beta Ripple open-source payments protocol.

-- the amount wasn't specified -- with Google Ventures and IDG Capital Partners. (Hat tip to GigaOM for the news.)

Last month, OpenCoin wrapped up an earlier angel round of funding from another high-profile group of technology VCs: Andreessen Horowitz, FF Angel IV, Lightspeed Venture Partners, Vast Ventures and the Bitcoin Opportunity Fund.

Co-founded by Jed McCaleb, a veteran of the Mt. Gox bitcoin exchange, and Chris Larsen, who previously established E-LOAN, OpenCoin is developing ripple, an open-source payments platform being touted as a quick, easy and low-cost way to exchange currency of any kind anywhere in the world. Ripples are also the name for the digital form of money (abbreviation: XRP) that will be among the currencies tradable on the ripple platform.

(Note: OpenCoin is not the same as OpenCoin.org, a different organization developing an open-source electronic cash system.)

Although ripples are a digital currency like bitcoin, OpenCoin says its coin will complement bitcoin rather than compete with it. In its " Introduction to Ripple for Bitcoinershttps://ripple.com/wiki/Introduction_to_Ripple_for_Bitcoiners," the company states:

"Ripple will likely be the easiest way to buy and sell bitcoins. Ripple's built-in exchange will allow people to buy and sell bitcoins using any other currency on the ripple network."

Like bitcoins, ripples will also be limited in number. OpenCoin plans to ultimately create 100 billion, releasing half into circulation and keeping half to help ensure the currency's stability.

describes itself as "a radically different kind of venture-capital fund." Founded in 2009, it has invested in more than 100 companies so far and plans to invest over $1 billion over the next five years.

is a "China-focused investment firm with over $2.5 billion (US) capital under management."

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.