Venture Capital/Digital: Despite Crypto Meltdown, Institutional Platform FalconX Doubles Valuation

FalconX, a prime brokerage, was valued at $8 billion.

Crypto prime brokerage FalconX announced a $150 million Series D round that put the firm’s value at $8 billion, more than twice what it was in August 2021 during Series C, and bringing up aggregate funding to over $430 million. The already profitable company plans to add 55 employees in the coming months, seemingly flying in the face of an industry trend that has recently seen layoffs at many major crypto players following a meltdown in digital asset prices. (Reuters)

Reporting a solid quarter in March, FalconX drew interest from top investors. The round was led by GIC and B Capital, with participation from Thoma Bravo, Wellington Management, Adams Street Partners and Tiger Global Management. A part of the proceeds would go to investors who sold their stakes, the amount of which was not disclosed.

Chief executive and founder Raghu Yarlagadda told Reuters that despite expected volatility in the crypto markets in coming months, “we see very strong opportunities for acquisitions.”

Despite the bump up in the company’s valuation from $3.75 billion in August 2021 to $8 billion currently, the months-long funding process was rocky due to events such as the collapse of Terra and the problems at Celsius.

“There has been a definitive flight to quality in both the public and private markets – with investors focused on strong, profitable and sustainable companies,” Yarlagadda added.

Apart from new hiring, FalconX will deploy the new funds in acquisitions, technology and data analytics, expanding its services to institutions from trading execution, credit and prime brokerage.

Related Story: Institutional Digital Asset Platform Anchorage Lands $350M In KKR-Led Round

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