Seven months ago, Fred Ehrsam pitched his bitcoin-based startup Coinbase to more than a dozen Silicon Valley investors. Although those potential backers were known for being forward-thinking -- and they had a lot of money to invest in high-tech ventures -- Ehrsam got more than a few blank stares. He spent most of his time explaining the concept of peer-to-peer currency, which is emerging as the world’s default platform for digital money, than he did describing his plans for the company itself. So, he and his co-founders turned to the Chinese, specifically, to IDG Ventures. To the Beijing-based venture capitalists, the PayPal-like service for buying, selling and accepting bitcoins was a perfect fit.
Photo: Hacker NewsAlthough bitcoin is a digital Web-based currency, a limited number of physical coins are in circulation with embedded computer codes for redeeming their value.
“They said, ‘We’re sold on digital currency, we just want to know if you’re the right people,’” Ehrsam told International Business Times, as he paced a San Francisco rooftop terrace on a recent windy afternoon. “It was a very different starting point.” READ MORE