FalconX is the latest crypto company to secure millions of dollars in the latest funding round despite the crypto markets experiencing a huge drop.
Despite the current bearish trend in the crypto markets, venture capital companies continue putting in capital in major industry operators like FalconX.
FalconX is an institutional-level digital asset platform and cryptocurrency brokerage. It has managed to raise $150 million in the latest funding process as part of its Series D financing round.
Completed in early June, the funding values FalconX at $8 billion, more than doubling from its Series C-round valuation of $3.75 billion held in August 2021, the company confirmed on June 22, 2022. The company has now raised over $430 million cumulatively.
FalconX’s latest investment round was led by the Singaporean sovereign wealth fund GIC together with Facebook’s Eduardo Saverin-backed B Capital Group. The other major investors include renowned industry investors and VC companies like Adam Street, Tiger Global Management, and Thoma Bravo.
The new funding round will enable FalconX to support new markets for its institutional clients and provide new products, according to CEO Raghu Yarlagadda. He added:
“The investment will allow us to further accelerate growth by looking at M&A opportunities that add strategic value to our existing core offerings. Similarly, we’re looking to add best-in-class talent.”
FalconX CEO also said that the current bear market did not affect the firm, saying:
“FalconX has had no material exposure in this market because of our robust risk management program. We are financially strong and growing because we have a market-risk neutral business model.”
Yarlagadda also stated that FalconX’s credit offerings are “over-collateralized,” backed by liquid collateral together with “all assets are deployed only within the FalconX platform.” The CEO noted:
“This allows us to have a strong real-time view of risk management and mitigate risk. In these market conditions, we tend to see more activity in market-neutral strategies than directional.”
He also stated that FalconX has continued to record massive client growth in derivatives and spot markets.
The funding comes a few weeks after FalconX became one of the leading crypto swap dealers registered with the United States National Futures Association in April 2022. The company also became one of the first crypto-focused Primary Level Members of the International Swaps and Derivatives Association.