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Cryptocurrency brokerage FalconX is the latest company to secure millions of dollars in fresh funding from 2 major VC funds, despite the ongoing bearish trend in the crypto market.
Recently, FalconX – institutional-grade digital asset platform and crypto brokerage – has raised 150 million dollars new capital as part of Series EAS funding round.
Completed in early June, the funding round valued FalconX at $8 billion, more than doubled compared to the previous Series C round valuation of 3.75 billion USD in August 2021. The amount of capital raised by the company now totals more than 430 million USD.
FalconX’s latest investment round led by Singapore-based asset fund is GIC and B Capital Group supported by Eduardo Saverin of Facebook. Other investors include well-known investors in the industry and VC firms such as Tiger Global Management, Adams Street and Thomas Bravo.
The new funding round will help FalconX enable new markets for institutional customers as well as deliver new products.
CEO Raghu Yarlagadda shared:
“The investment will allow us to accelerate growth even further by looking at merger and acquisition opportunities that bring strategic value to existing core offerings. Similarly, we are looking to add the best talent.”
The FalconX CEO also noted that the current bear market is not affecting the company:
“FalconX shows no signs of being affected by the market right now because of our robust risk management program. We are financially strong and growing because we have a market risk neutral business model.”
The CEO went on to say that FalconX’s credit services are “over-collateralized,” backed by liquid collateral, and that “all assets are only deployed within the FalconX platform.”
“This allows us to have a real-time view of risk management and risk mitigation. Under varying market conditions, we tend to see more activity in market-neutral rather than directional strategies,” noted the CEO.
He also added that FalconX has continued to see strong customer growth in the spot (SPOT) and derivatives markets.
The funding round comes shortly after FalconX became one of the first crypto swap “dealers” registered with the US National Futures Association in April 2022. The company also became one of the first crypto-focused entry-level members of the International Swaps and Derivatives Association.
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