Former Citi-group banker Arthur Hayes started BitMex, a bitcoin exchange. Bound to be a success, says VC and fintech expert William Bao Bean to Bloomberg, as Chinese are looking for ways to invest their capital outside China, where growth it slowing down.
Last month, BitMEX took first place among 475 startups at a competition in Singapore hosted by the technology blog Tech in Asia. Hayes and his partners are now seeking to raise $2 million to expand the financial products they can offer. They want a partner who can help distribute their products to retail Chinese clients or an established derivatives exchange to give them access to institutional traders. “Profitability gives us flexibility in who and how we take funding,” said Hays, adding they have turned down offers.
William Bao Bean, a China venture investor, said BitMEX’s timing is fortuitous. Investors in the country are looking to diversify abroad as the economy slows and domestic investments become more unpredictable. “There are many people who want to see their money outside of China right now,” said Bean, a former Deutsche Bank investment banker who runs a program for startups called Chinaccelerator.
Are you looking for more fintech experts at the China Speakers Bureau? Do check out this list.