CoinDesk reports that GetGems (formerly GEMS) has secured another $400,000 in venture investment from Magma VC, an early investor in Waze, which was bought out by Google for $1.1 billion in 2013.
GetGems is a social messaging app that awards its users with its native cryptocurrency.
Combined with the roughly $600,000 already raised through its crowdsale on Koinify, GetGems has raised the equivalent of roughly $1 million to date.
The funding gives a huge boost to a startup competing in a sea of other services in the crypto, social and mobile spaces. Some in the crypto community have been skeptical of the app, with Dogecoin founder, Jackson Palmer, previously tweeting:
For anyone considering the GEMs ICO, my advice is to steer clear. It’s just Telegram or WhatsApp with a Counterparty token slapped on top.
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— Jackson Palmer (@ummjackson) December 1, 2014
Magma VC sees it differently, with general partner Ran Achituv telling CoinDesk:
“We are looking for disruption, differentiation, distribution and a great winning team. We felt Gems has very good characteristics in all four parameters. Chat and value transfer is a growing trend.”
GetGems CEO, Daniel Peled, explained that the funding will increase the startup’s chances of future success, since it will allow the company to scale faster as it looks to build up its network.
For a detailed list of recent investment and M&A activity in the crypto industry, please visit the DC Magnates Crypto Deal Table.