Crypto brokerage FalconX raises $150M at $8B valuation

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Despite the ongoing downward trend in the cryptocurrency markets, venture capital firms continue to inject capital into major industry players such as FalconX.

FalconX, an institutional level digital asset platform and crypto brokerage, has raised $150 million in new funding as part of its Series D funding round.

The company announced to Cointelegraph on Wednesday that the funding round, which completed in early June, values ​​FalconX at $8 billion, more than double its previous $3.75 billion valuation in Round C in August 2021. The company has now raised more than $430 million in the total.

FalconX’s latest investment round was led by Singapore’s sovereign wealth fund GIC and Facebook-backed B Capital Group, Eduardo Saverin. Other investors include prominent industry investors and venture capital firms such as Tiger Global Management, Adams Street and Thoma Bravo.

FalconX’s new funding round will help enable new markets for its institutional clients as well as provide new products, CEO Raghu Yarlagada told Cointelegraph. The investment will allow us to further accelerate growth by looking at merger and acquisition opportunities that add strategic value to our existing core offerings. Likewise, we look forward to adding the best in class talent.”

The CEO of FalconX also noted that the current bear market has not affected the company, saying:

“FalconX has had no material exposure in this market due to our robust risk management programme. We are financially strong and growing because we have a market risk neutral business model.”
Yarlagadda tends to say that FalconX’s credit offerings are “over-secured,” backed by liquid collateral, and “all assets are only published within the FalconX platform.”

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

Related: Despite the Downside, Hedge Funds Dip Their Toes in Crypto: PwC

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 core-level members of the International Association of Swaps and Derivatives.

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