Cryptocurrency wallet ZenGo has completed its Series A funding round, raising a total of $ 20 million. The funds obtained in this investment round would be used to improve the products offered within the cryptocurrency portfolio.
The announcement was published, in recent days, directly from the official ZenGo portal. In this, new and existing investors were thanked for making this first Series A investment round possible. New investors, such as Insight Partners, Distributed Global and Austin Rief Ventures, joined the round.
ZenGo would be the first investment in the world of cryptocurrencies by the venture capital firm Insight Partners, the main investor in this financing round. In the past, this firm has made investments in platforms such as Wix and Shopify.
The announcement also makes known the steps to follow after this round of financing has been successfully completed by the company. First of all, they mention about “improving the crypto portfolio for retail investors” as well as optimizing the security within the wallet. They also plan to offer more financial services, including the VISA prepaid card, along with other options such as commerce and savings services.
Financing rounds are business instruments that allow companies to raise capital from third parties, in exchange for the sale of shares or participations in the company.
ZenGo and its biometric backup system
ZenGo is a wallet that offers a novel backup system. Traditional private keys have been replaced by a dual mathematical system that is backed up in two different places: one on the user’s phone; and another on the ZenGo servers. According to the portfolio portal itself, with the part of the key stored by them, they cannot access user funds without their authorization.
This system would work even if ZenGo disappeared from the face of the earth, thanks to a storage method called Chill Storage. This allows you to retrieve the other part of the key to sign the outgoing transactions without depending on the ZenGo servers.