Chicago-based web3 payment stack provider, Coinflow Labs, has closed a pre-seed funding round worth $1.45m. The funding round was led by Jump Crypto and Reciprocal Ventures, with participation from CMT Digital, Digital Currency Group, Gumi Cryptos, Builder Capital, Prompt Ventures, Blocktech Ventures, and several angel investors. The company will use the funds to accelerate product, software and business development initiatives, onboard new customers and expand its team.
Coinflow Labs was founded in 2022 by Daniel Lev and Ben Meeder, with the aim of developing a web3 payments infrastructure solution that provides a secure and efficient way for web3 companies to accept traditional payments such as credit cards. The company offers a comprehensive web3 payment stack that enables web3 companies to accept traditional payment methods for purchasing non-fungible tokens (NFTs) with a credit card. Its off-ramp product allows customers to move cryptocurrency from self-custody wallets instantly to their bank accounts using existing real-time payment rails.
Coinflow Labs aims to bridge the gap between traditional finance and blockchain technology and make it easier for non-crypto-native customers to engage across the web3 ecosystem, including interacting with games, wallets and other web3 consumer products. The company’s products are currently live on the Solana, Near, Polygon, and Ethereum blockchains, with plans to expand to additional chains. Coinflow Labs has secured partnerships with Web3Auth, a non-custodial auth infrastructure provider, and Tier 1 US Banks for payment processing and off-ramp services. The company is also an early adopter of the United States FedNow program, which enables financial institutions to deliver end-to-end faster payment services to their customers and is expected to launch in late 2023.
Commenting on the funding round, Daniel Lev, Co-Founder and CEO of Coinflow Labs said, “Amid unprecedented market volatility and uncertainty across the entire global financial system, there exists a unique opportunity to bring efficiency, security, and trust to payment systems, especially within the evolving web3 space”. He added, “With the support of our investors and partners, we look forward to onboarding additional customers and building FinTech 2.0, the next generation of financial blockchain technology”.
Josh Kuzon, Partner at Reciprocal Ventures, said, “At Reciprocal, we back founders who are fueling the expansion of the web3 ecosystem, and we’re thrilled to support Coinflow, a foundational company revolutionizing the web3 payments landscape. Coinflow is enhancing the accessibility of web3 consumer products through streamlining integration with user-friendly checkout and off-ramps”. He added, “We’re excited to collaborate with the highly experienced team at CoinFlow and be part of their journey to enable the future of commerce”.
