A crypto gift card platform, Raise, has secured $63 million in funding. Haun Ventures led the round, with support from Paper Ventures, Selini Capital, GSR, and Solana co-founder Raj Gokal.
George Bousis founded Raise in 2013 to simplify the gift card market. Over time, he saw fraud challenges, with organized crime groups stealing card details. He believes blockchain can enhance security and streamline payments. His company has now invested over $100 million to develop blockchain-based “Smart Cards.”
Raise’s latest funding round includes primary and secondary share sales and token warrants. The company did not disclose its valuation but confirmed it was not below the previous $675 million valuation from its Series D round.
Crypto industry leaders join board
Raise has formed a new board with industry veterans. Marco Santori, former Kraken legal officer, and Bjorn Wagner, former Polkadot CEO, have joined. Other members include George Ruan, co-founder of Honey, and Matt Maloney, former GrubHub CEO.
The company is already profitable. Since its launch, it has facilitated over $5 billion in gift card transactions. Bousis initially explored tokenized gift cards in 2014, but the technology was not ready. By 2022, he saw improvements and decided to move forward.
Raise has since invested $25 million in building a blockchain platform. The system holds customer funds in stablecoins until the retailer receives payment. This model aims to reduce costs and improve security. Raise plans to decentralize the platform through a nonprofit and a dedicated cryptocurrency.
Retailers have shown interest, with Fortune 500 companies among potential partners. Raise will initially offer only digital gift cards. Nevertheless, the company believes blockchain can reshape the gift card industry, reducing fraud and middlemen while improving efficiency.
