FalconX Valuation Doubles to $8B Despite Crypto Market Turmoil

FalconX Valuation Doubles to $8B Despite Crypto Market Turmoil

Crypto platform FalconX has raised $150 million in a Series D funding round that has more than doubled its valuation in less than a year - despite the current crypto bear market.

The California-based company is now valued at $8 billion, up from $3.75 billion following its $210 million Series C raise in August 2021.

“The investment will enable us to further accelerate our growth [merger and acquisition] opportunities, adding strategic value to our existing core offerings,” FalconX CEO Raghu Yarlagadda told Blockworks. “We will continue to expand our product offering, double our market-leading reliable infrastructure and develop new markets for our institutional customers.”

Launched in 2018, FalconX allows institutions to manage their crypto strategies through a single interface to execute trading, lending and clearing. Its crypto-as-a-service offering enables banks, fintech companies and investment applications to add digital assets to their products.

Yarlagadda added in a statement that his company is one of the few crypto prime brokers that does not take market risk – meaning FalconX is not in conflict with its clients and their trading strategies.

“Given recent market conditions, this is extremely valuable to our customers who require a reliable market infrastructure provider,” he said.

The Singaporean sovereign wealth fund GIC and the B Capital Group, the a strategic partnership along with Boston Consulting Group led FalconX's latest fundraising round. Other participants included Thoma Bravo, Wellington Management, Adams Street and Tiger Global Management.

“As a tech-first infrastructure platform for digital assets, FalconX offers a holistic product offering coupled with unparalleled execution, supporting over 70 million transactions monthly,” B Capital Group General Partner Rashmi Gopinath said in a statement on Wednesday. “They are well positioned to lead the ongoing institutional transition to digital assets in the coming years.”

The new funding comes as crypto prices have fallen significantly in recent weeks. The price of Bitcoin was about ____-___ lower early Wednesday morning than it was a month ago, according to data compiled by Blockworks. The cryptocurrency's collective market value has fallen by __ during this time.

But despite the decline, which has caused crypto firms like Gemini, Coinbase and Crypto.com to pause or slow hiring efforts, FalconX plans to continue hiring.

Open roles This includes product managers, engineers, analysts, traders and a human resources manager for America and Europe.

Yarlagadda told Blockworks that bear markets are the best time to build a company.

“We have emerged significantly stronger from every market downturn by doubling our product and talent capabilities,” he said. “In this broader market downturn, we continue to see A-plus talent excited about crypto, and we are excited at the prospect of additional talented team members joining us.”

The company hired Suzy Walther, Carta's former chief people officer and Bloomberg talent director, as chief human resources officer in February to fill hundreds of positions in engineering, marketing, human resources and customer support.

FalconX also brought former Pinterest and Google executive Jon Kaplan on board as head of revenue later that month.

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The post FalconX Valuation Doubles to $8B Despite Crypto Market Turmoil is not financial advice.