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Coinbase Acquires YC-Backed Kippt To Beef Up Its Product, Design Talent

TechCrunch logo TechCrunch 7/05/2014 Kim-Mai Cutler

, one of the biggest Bitcoin consumer wallets and merchant processing platforms in the world, , a two-person YC-backed startup that had been working on a platform to share and store content.

Both companies, which came out of Y Combinator, had been collaborating informally for a long time. On the side, Kippt’s main designer Karri Saarinen had been doing a lot of work on Coinbase’s branding and visual look. Kippt’s other co-founder Jori Lallo also had worked on a Coinbase app gallery as the company builds out a Bitcoin-centric app platform with hundreds of developers.

This deal, done with a combination of cash and stock, is clearly one for talent. It shows that while many Y Combinator companies understandably don’t pan out, founders and engineers who go through the program have many soft landing opportunities elsewhere. Kippt is Coinbase’s first acquisition from firms like Andreessen Horowitz and Union Square Ventures.

Kippt where users could intelligently bookmark and share links, and called Inc that was comparable to Yammer or Convo. It ended up being used by companies like Teehan+Lax, Betaworks and Swiggle.

“Although our service has been loved by many, we never achieved the growth and the scale that would allow a sustainable future for Kippt,” Lallo and Saarinen wrote in a blog post. “Building personal knowledge online continues to be a challenging and ambitious problem.”

The pair said they’ll keep the free versions of Kippt and Inc running as a side project, but the pro versions will get discontinued.

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