PeerNova Validates Shift to Enterprise Blockchain with $31 Million Funding

Blockchain startup PeerNova has received $31 million in a Series B round, bringing the company's total fundraising to $74 million.

Mosaik Partners led the latest investment, joined by Intuitive Venture Partners and Medici Ventures, the investing arm of retail giant Overstock, the company said.

The sizable funding validates the one-time bitcoin mining company's shift to the enterprise blockchain designed to improve data reporting processes for financial services companies,.

San Jose-based PeerNova started life as a bitcoin mining company through a merger in 2014 between cloud mining firm CloudHashing and enterprise hardware designer HighBitcoin.

The company shifted its focus from mining infrastructure services to enterprise blockchain software with a $8.6 million Series A funding later in the same year.

The company uses proprietary blockchain technology to reduce reporting inefficiencies by replacing traditional auditors with cryptography.

Unlike most peer blockchain solutions, PeerNova's product Cuneiform does not have a distributed ledger, as it only provides a reference point for a client to streamline the querying of their databases, creating cryptographic evidence of events.

The company helped financial services giant State Street with sorting tax liabilities for hedge funds by using the blockchain system to track their investments and reinvestments over multiple years.

PeerNova further developed its enterprise blockchain business with $5 million through the second tranche of the Series A financing in March 2016.

In November 2016, Chinese conglomerate Zhejiang Zhongnan Holdings Group acquired five percent of PeerNova for $4 million.