Crypto Brokerage FalconX Raises $150M at $8B Valuation

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Despite the continued bearish trend in the cryptocurrency markets, venture capitalists continue to inject capital into major industry players like FalconX.

FalconX, the institutional-grade digital asset platform and crypto brokerage, raised $150 million in new funding in its Series D funding round.

Completed in early June, the funding round values ​​FalconX at $8 billion, more than double its previous Series C valuation of $3.75 billion in August 2021, the company told TSWT on Wednesday. The company has now raised over $430 million in total.

FalconX’s latest investment round was led by Singaporean sovereign wealth fund GIC and Facebook’s B Capital group, backed by Eduardo Saverin. Other investors included prominent industry investors and venture capitalists like Tiger Global Management, Adams Street and Thoma Bravo.

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The new funding round will help FalconX open up new markets for its institutional clients and deliver new products, CEO Raghu Yarlagadda told TSWT. “This investment will allow us to further accelerate growth by examining M&A opportunities that add strategic value to our existing core offerings. Likewise, we are looking to add the best in class talent,” added Yarlagadda.

The FalconX CEO also noted that the current bear market is not impacting the business, saying:

“FalconX has had no material exposure to this market due to our strong risk management program. We are financially strong and growing because we have a market-neutral business model. »

Yarlagadda goes on to say that FalconX’s credit offerings are “over-collateralized,” backed by liquid collateral, and “all assets are deployed solely within the FalconX platform.”

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“It allows us to have a real-time view of risk management and risk mitigation. In these market conditions, we tend to see more activity in market-neutral strategies than directional,” noted the CEO. He also added that FalconX continued to see strong customer growth in spot and derivatives markets.

Related: Despite Downtrend, Hedge Funds Are Dipping Their Toes Into Crypto: PwC

The funding round comes shortly after FalconX became one of the first crypto exchange dealers registered with the United States National Futures Association in April 2022. The company also became one of the first tier members primary focus on cryptography from the International Swaps and Derivatives Association.

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