Despite the ongoing bearish trend in the cryptocurrency markets, venture capital firms continue to invest in major industry players such as FalconX.
FalconX, an institutional-grade digital asset platform and crypto brokerage, has raised $150 million in new funding in a Series D funding round.
Completed in early June, the funding round values FalconX at $8 billion, more than double its previous C-round estimate of $3.75 billion in August 2021, the company told Cryptooshala on Wednesday. In total, the company has raised over $430 million.
The latest FalconX investment round was led by Singapore-based sovereign wealth fund GIC and B Capital Group, backed by Facebook’s Eduardo Saverin. Other investors included prominent industry investors and venture capital firms such as Tiger Global Management, Adams Street and Thoma Bravo.
The new funding round will help FalconX open up new markets for its institutional clients as well as provide new products, CEO Raghu Yarlagadda told Cryptooshala. “This investment will allow us to further accelerate growth by considering M&A opportunities that add strategic value to our existing core offerings. Similarly, we are looking for top-of-the-class talent,” Yarlagadda added.
The FalconX CEO also noted that the current bear market has not affected the company, stating:
“FalconX does not have a significant impact in this market due to our robust risk management program. We are financially strong and growing because we have a business model that is neutral to market risks.”
Yarlagadda went on to say that FalconX’s loan offerings are “over-collateralized”, backed by liquid collateral, and “all assets are deployed on the FalconX platform only.”
“This allows us to have a clear understanding of risk management in real time and mitigate risk. In these market conditions, we tend to see more activity in market-neutral strategies than in directional ones,” the CEO noted. He also added that FalconX continues to see significant growth in the number of customers in the spot and derivatives markets.
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The funding round comes shortly after FalconX. became one of the first cryptocurrency swap dealers registered with the US National Futures Association in April 2022. The firm also became an early member of the International Association of Swaps and Entry Level Derivatives specializing in cryptocurrencies.
Credit : cointelegraph.com