“Create an open financial system for the world”

Founded: 2012 in San Francisco, USA

Category: Financial technology (Cryptocurrency)

Primary office: San Francisco, CA (USA)

Core technical team: San Francisco, CA (USA)

Status: Private

Employees: 1100+

Amount raised:$547.3 million (9 rounds – December 2018

OVERVIEW

  • An online platform that allows merchants, traders and consumers manage their cryptocurrency portfolios and transact with digital currencies l(e.g., Bitcoin, Ethereum, and Litecoin)
  • Enables 300 million users to create and trade with personal digital wallets directly connected to their bank accounts.
  • Offers a simple and powerful API for developers to build applications and accept payments in both digital currencies

 

PERFORMANCE METRICS

  • Valuation – $8 billion (2018)
  • Revenue – $545 million est. (2019)
  • Gross merchandise value – $170 million (2019)

 

ACHIEVEMENTS

  • Processed over $150 billion in cryptocurrency transactions
  • The world’s largest cryptocurrency exchange, with over 30 million users across 102 countries
  • Launch of Mobile Wallet App with over 100,000 downloads
  • The first cryptocurrency company to be approved as a Visa principal member
  • Valuation greater than Slack and Instacart

Sells

  • Global Digital Asset Exchange (GDAX): Trading a variety of digital currencies on its professional asset trading platform – management of portfolio, recurring buys, vault protection)
  • API: Online interface for developers and merchants to build applications and accept payments in digital currencies

Channels

  • Integration with banks and online payment services such as Visa
  • Affiliates and Digital Marketing – via social media; Facebook, Twitter
  • User Friendly Omni-channel platform (web and mobile – Android & iOS)

Competencies

  • Founder-led management team
  • Cyber-secured online platform for digital transactions
  • Blockchain technology/Machine learning/Artificial Intelligence/Data analytics

Resources

Assets

  • Partnership with various banks and online payment services across the world
  • 1,100+ employees in 6 offices across 4 countries
  • Secure offline storage
  • Platform – GDAX – supports cryptocurrency market with multiple security assets

Priorities

  • Easy to use Online Interface
  • Provides real-time access to cryptocurrency trade information to assist users’ decision-making
  • Interactive online learning environment for users
  • Fast, easy and convenient means of online payment with direct links to bank accounts
  • Industry best practices (e.g., FIPS 140, SSL, AES-256 encryption, two step verification, employee criminal background checks)
  • Insurance policy for cryptocurrency stored on Coinbase servers – 100% payback if on-line storage compromised
  • 98% of customer funds are stored offline
  • User accounts are linked directly to bank accounts for ease of transaction

Priorities

  • Improve efficiency of User Interface in high volume/peak periods
  • Increase Cybersecurity of platform for continuous security of customer information and funds.
  • Acquiring complementary assets – e.g., Neutrino, Blockspring Keystone and DigitalWealth
  • To become the google of cryptocurrencies

Assertions That Best Describe What the Company Did to Scale Early, Rapidly & Securely

  1. Continuously improve company cybersecurity by i) Assessment of cyber risks to company (Risk analysis); ii) Implementation of cybersecurity measures (Protect); iii) Rapid identification and response to cyberattacks (Monitor); and iv) Reduction of cyberattack impact (Respond)
  2. Continuously seek and receive funding to support the company scaling master plan and improve its brand in the marketplace
  3. Enter a new market by partnering with or purchasing local companies
  4. Hire, develop and partner with talented people who have experience scaling companies, many connections and good reputations
  5. Apply big data analytics to produce information about users, suppliers and customers and suggest questions
  6. Build capability to operate across borders early
  7. Lead a team that is innovative, talented, diverse, focused, committed, and fully understands what their responsibilities are and where they fit in with scaling the business
  8. Use scientific and technological advances to develop innovative products and services

References

2020. Coinbase. https://www.owler.com/company/coinbase

Coinbase website. https://www.coinbase.com/

Crunchbase 2020. Coinbase funding rounds. https://www.crunchbase.com/organization/coinbase#section-funding-rounds


Contributors

  • Damilola Balogun
  • Yinka Olanrewaju-Olawepo