Lolli, a startup that rewards people with bitcoin when they shop online, has raised $3m in a second seed funding round.

The funding round, which was oversubscribed, was led by Pathfinder, the early-stage investment vehicle of Founders Fund.

The total number of investors reached double figures, and included beauty entrepreneur Michelle Phan, actor and serial investor Ashton Kutcher and Guy Oseary, the manager of Madonna and U2.

At the heart of Lolli’s offering is a focus on making the acquisition of bitcoin easy and simple through its rewards-based approach. The company follows the more traditional shopping rewards model, where customers earn when they spend, but gives them bitcoin instead of traditional fiat currency.

Founded in 2018, Lolli has already partnered with more than 750 merchants and brands in the US, including Sephora, Priceline and Macy’s, providing an average of 7% rewards in bitcoin to users.

It is currently only available to US users as a browser extension on Chrome and Firefox, and Lolli is also developing a mobile app that is set to be released later this year.

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By GlobalData

“We’re excited to continue accelerating the mission of Lolli, making bitcoin more accessible to all,” said Alex Adelman, CEO and co-founder of Lolli.

“The team and I are creating the easiest way for people to earn and own bitcoin. We have an incredible syndicate of strategic investors that will help drive the adoption of Lolli and bitcoin forward.”

Lolli funding round shows support for rewards to make “bitcoin accessible to everyone”

The wildly successful funding round demonstrates significant support for the rewards model offered by Lolli as a vehicle for increasing access to bitcoin.

“Lolli became the leader in bitcoin rewards by making it frictionless to own bitcoin,” said Scott Nolan, partner at Founders Fund.

“That initial friction has always been the biggest barrier to bitcoin adoption, and with the launch of their mobile app this year Lolli will take the next step in making bitcoin accessible to everyone.”

“The moment I learned about Lolli, I knew this was the right platform that will help make bitcoin accessible to all, and I needed to invest in it,” added Michelle Phan.

“I’m thrilled to work with Lolli to help educate and bring Bitcoin to the masses.”

Read more: Bitcoin halving, coronavirus and recession: Is an adoption surge ahead?