Transparent Financial Systems, Inc., a U.S.-based startup that’s developing on-demand, 24/7/365, cryptographic settlement solutions, announced on Wednesday it secured $14 million through its Series A financing round, which was led by Pantera Capital with participation from Square, Inc., Future\Perfect Ventures, IDEO Colab Ventures, Digital Currency Group, and CMT Digital. The company reported that the funding round is in addition to the $8 million in seed financing received from Vulcan Capital in July 2018.
“At Transparent Systems we are transforming global financial systems with an open universal platform that enables secure, frictionless payments through distributed cryptographic systems.”
Transparent also revealed it began at Vulcan Inc. at the direction of the late Paul Allen, along with Shawn Johnson, the former chairman of the investment committee of State Street Global Advisors. In July 2018, Transparent was spun out by Jeff Kramer and István Fülöp, members of the team at Vulcan. The company hired industry veterans Alex Fowler as its CEO and Patrick Murck as its Chief Legal Officer. Chris Orndorff, Chief Investment Officer of Vulcan Capital, further stated:
“The financial industry is ready for new technology to improve the way people pay for goods and services. The team at Transparent has made impressive strides over the course of its first year, and we are excited to continue our work with them as their strategic partner and new investor that honors Paul Allen’s vision for the next wave of fintech.”
Speaking about the investment, Joey Krug, Co-Chief Investment Officer of Pantera, commented:
“Blockchain technology is rooted in decades of advances in distributed systems and cryptography, and it’s at the center of banking and financial innovation today,” said . “Based on Transparent’s strategic partnerships and solution, we believe this investment represents an exciting opportunity and will provide tremendous value to the future of on-demand settlements.”
Mike Brock, Strategic Development of Cash App at Square, added:
“Square believes that blockchain represents a path towards a more robust, safe, and empowering future for all participants in the economy – from individuals to businesses. We are excited to work with Transparent Systems to bring that vision to the financial system.”