Crypto broker FalconX has raised $150 million in its latest funding round from top investors despite weak market conditions. The need for a reliable platform for order execution and institutional conviction in digital assets made venture capital firms invest again in FalconX.
FalconX has become one of the most valuable platforms for institutional investors, as it doubled its valuation to $8 billion with the latest funding. The latest round was led by sovereign wealth fund GIC and prominent venture capital firm B Capital, in participation with Wellington Management, Adams Street Partners, Tiger Global Management, and Thoma Bravo.
FalconX Raises Funding from Top Investors Amid Market Volatility
California-based FalconX on June 22 said it has raised $150 million in a Series D funding round. The latest funding has doubled the company’s valuation at a time when the crypto market is under massive pressure.
In fact, several crypto companies such as Coinbase, Gemini, Bybit, and Crypto.com have laid-off employees. The decline in Bitcoin and Ethereum prices have further worsened the market conditions. Venture capital firms and investors have either ceased or slowed their investments in crypto companies in the last two months.
However, the latest funding indicates that venture capital firms still consider crypto companies as a better ROI option amid stagflation and rising inflation.
Raghu Yarlagadda, CEO and Founder of FalconX, said:
“FalconX is one of the very few crypto prime brokerages who do not take on market risk. This investment is a validation of our client-first focus, the health and strength of the crypto industry, and the move towards digital asset transformation.”
FalconX seeks premier talent to increase its workforce by 30%. The funds raised will be used in acquisitions, technology, and data analytics. And also for expanding its services to institutions from trading execution, credit, and prime brokerage.
Crypto Market Faces Massive Pressure as Prices Fall
The crypto market is under intense pressure as top cryptocurrencies continue to fall amid a lack of positive sentiment. Bitcoin and Ethereum prices are currently trading near the $20,000 and $1000 levels, respectively.
However, institutional interest in crypto seems to be rising. Moreover, FalconX’s new funding round shows that there’s still some investor appetite for crypto.