37Coins failure

37Coins

Startup that developed Bitcoin technologies

Description

37Coins has been developing new Bitcoin technologies for the hottest new markets for Bitcoins such as the Philippines and Singapore. The company is a Bitcoin wallet provider headquartered in California. 37Coins created several SMS gateway systems (SMSGateways). These servers allowed users from a certain region to receive and send Bitcoins using their so-called SMSWallets. The Gateway is an android application that operates by connecting the user’s network service provider to the internet.

Stats

Category
Finances
Country
United States
Started in
2014
Closed in
2015
Number of Founders
3
Name of Founders
Johann Barbie, Jonathan Zobro, Songyi Lee
Number of Employees
1-10
Number of Funding Rounds
2
Total Funding Amount
$525K
Number of Investors
4

Cause of Failure

In 2014, 37Coins announced that they were no longer going to support such transactions. The company’s effort to provide Bitcoin transfer technologies across different regions has proved to be nearly impossible for the company. These are the two main reasons for the company’s shutdown:

37Coins stated that delivering monetary funds across different carriers outside of the USA was “Unreliable.”

Furthermore, 37Coins said that their “initial objective was not possible to achieve with the amount of capital raised.” The startup stopped its operations mainly because of lack of sufficient funds. The mere maintenance of the servers that they had developed required a big chunk of capital investment itself, not to mention that the company had several of these server’s set-up all over the globe.

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