Crypto Investment App Donut Raises $1.8 Million in Seed Funding
Cryptocurrency investment app provider Donut has raised $1.8 million in a seed funding round.The Germany-based startup explained to CoinDesk on Thursday that the round was led by early-stage equity capital firm Redalpine. Additional investors included technology venture funds EarlyBlock and Entrepreneur First, AngelList’s Philipp Moehring and Andy Chung, N26 bank board member Marcus Mosen, and others.
The firm bases its mission on the premise that developing a digital asset portfolio is a “daunting task” for a large number of retail investors and, hence, strives to make that procedure simpler. The app is already in beta and is expected to see public launch this summer.
Donut co-founder and CEO Neel Popat said in the announcement:
“We believe most people will have the majority of their wealth stored in digital assets within the next decade. That could be anything from cryptocurrencies to fractional ownership of art or owning a piece of unique land in virtual reality.”
“Our mission is to empower everyone to become an investor in that future, ” he added.
Since the firm is still in the product development process, Popat told CoinDesk he couldn’t provide details on supported crypto assets or fee structure yet.However, he said Donut’s target market is “first-time” crypto investors.
“We want to make crypto investing more accessible for the average consumer and help them educate about investing, crypto and the underlying technologies, ” he said.
The application permits users to acquire baskets of digital assets through a “gamified graphical user interface,” according to Popat, and is optimized for reoccuring micro-investing transactions.
With the new funding, Donut said it intends to grow its engineering and design teams, in addition to further develop its product and boost partnerships.
Redalpine partner and Donut board member Harald Nieder remark that, while digital assets have lots of benefits over traditional assets, they “lack a single access point for holders to conveniently store, manage and transact.”
Founded in 2018, Donut is led by ex-Google, Accenture and N26 employees.
The app leverages the EU’s Payment services (PSD 2) Directive to “remove some of the common on-ramp issues with buying and storing digital assets, ” Donut said, adding that “over 5, 000” users have already joined its waiting list.
Founding team image courtesy of Donut (Neel Popat on left)