QEDIT, an Israeli startup that provides an enterprise solution for preserving privacy on the blockchain, has raised $10 million in a Series A funding round backed by Chinese financial services giant Ant Financial.
The funding round, which came two years after QEDIT raised an undisclosed amount in its seed round, was led by MizMaa Ventures, an Israeli investment firm that backs deep technology innovators, and joined by RGAX, Meron Capital, Collider Ventures, Jovono, and Target Global.
Founded in 2016, QEDIT helps banks maintain confidentiality when transferring assets on decentralized networks, and helps companies set up supply chain management systems while preserving confidentiality.
The company said its financial partners use QEDIT’s technology to calculate an accurate credit scoring based on private data, without accessing the data itself.
“Using QEDIT you can transfer ownership of blockchain assets without revealing the confidential transaction details while still ensuring regulatory compliance according to custom-defined business rules,” the company says on its website.
The fresh funding will be used to improve QEDIT’s highly-secure protocol and to expand its sales and partnerships team, the company said in a statement.
Jonathan Rouach, CEO and co-founder of QEDIT, said the closing of the Series A round “is a significant vote of confidence” from leading investors and further boosts the company’s goal of raising blockchain adoption among enterprises globally.
“Today marks a major step in fulfilling our vision to enable secure collaboration between companies using sensitive data. Working with VMware, Ant Financial and RGAX will help us showcase the value that Zero-Knowledge Proof cryptography can offer on an enterprise level, across different industry verticals,” Rouach said.
MizMaa Ventures, the lead investor in the funding round, is a principal investment firm that specializes in investments in technology companies in Israel. MizMaa was founded by Isaac Applbaum, former partner at Lightspeed, and Catherine Leung, former vice chairman of Asia investment banking at JPMorgan.
Blockchain firms raised almost $3.9 billion in venture capital funding globally in 2018, up 280 per cent from 2017, according to a Diar report citing Pitchbook data.
Some of the prominent deals in the space include Korea’s largest VC, Korea Investment Partners (KIP), making an undisclosed investment in a blockchain-based supply platform TEMCO, and Vertex Ventures investing in cryptocurrency exchange Binance.
In November 2018, Singapore-based Quantum Energy Asset Management and blockchain developer Pundi X announced a $100-million blockchain fund to be raised in 2019.