Venture Capitalists and FalconX: A Match Made in Crypto Heaven
Despite a persistent bearish sentiment in the cryptocurrency world that has many investors raising their fists to the heavens, venture capitalists seem to see an angel in FalconX. The institutional-level digital asset platform has recently pulled off a staggering $150 million in a Series D funding round, pushing its valuation to an eye-popping $8 billion. Just a little reminder: it was only a shade of $3.75 billion back in August 2021. Talk about a glow-up!
Major Backing: Who’s Investing?
The latest funding effort was spearheaded by GIC, Singapore’s sovereign wealth fund, alongside B Capital Group, which is backed by the Facebook co-founder Eduardo Saverin. Other heavyweights joining the party include Tiger Global Management, Adams Street, and Thoma Bravo. I mean, when the big dogs come barking, you know the bones are tasty!
FalconX’s Big Plans for Growth
With this fresh chunk of capital, FalconX doesn’t just plan to binge-watch Netflix; they have grand plans. CEO Raghu Yarlagadda shared that the investment would facilitate entering new markets and launching exciting products for their institutional clientele. Yarlagadda also hinted at looking for mergers and acquisitions that could solidify their core offerings, suggesting they have more tricks up their sleeve than a magician at a kids’ birthday party!
Weathering the Bear: A Strong Business Model
Despite the current market melee, Yarlagadda assures us that FalconX hasn’t felt the sting of the bear. Thanks to their robust risk management, they’re like that cat that always lands on its feet. The CEO stated, “We are financially strong and growing because we have a market-risk neutral business model.” Well, if that’s not a refreshing perspective, I don’t know what is!
Solid Risk Management: Ah, The Safety Net
FalconX’s credit offerings are described as “over-collateralized,” which, let’s be honest, sounds like a fashionable term for being cautious with money. With liquid collateral backing, all assets are managed solely within the FalconX platform. This meticulous management gives them a strong grip on real-time risks, allowing them to navigate the stormy seas with grace. Take that, market volatility!
Good Times for Investors
Interestingly, the funding round comes on the heels of FalconX becoming one of the first crypto swap dealers registered with the U.S. National Futures Association, not to mention their new status as a primary-level member of the International Swaps and Derivatives Association. This is the high-ground part of the hill where investors feel secure from the bears on the downside.
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