FalconX valuation doubles to $8 billion despite crypto market turmoil

  • FalconX CEO Raghu Yarlagadda says bear markets are the best time to start a business
  • The company had raised $210 million last August at a valuation of $3.75 billion

Crypto platform FalconX has raised $150 million in a Series D funding round that has more than doubled its valuation in less than a year – despite the current crypto bear market.

The California-based company is now valued at $8 billion, up from $3.75 billion after its $210 million Series C raise in August 2021.

“The investment will allow us to further accelerate our growth [merger and acquisition] Opportunities that add strategic value to our existing core offerings,” FalconX CEO Raghu Yarlagadda told Blockworks. “We will continue to expand our product offering, double our market-leading reliable infrastructure and open up new markets for our institutional clients.”

Launched in 2018, FalconX allows institutions to manage their crypto strategies from a single interface to execute trading, lending, and clearing. Its crypto-as-a-service offering enables banks, fintech companies and investment applications to add digital assets to their products.

Yarlagadda added in a statement that his company is one of the few crypto prime brokers that does not take market risk – meaning FalconX is not in conflict with its clients and their trading strategies.

“Given the recent market conditions, this is extremely valuable to our customers who demand a reliable market infrastructure provider,” he said.

Singaporean sovereign wealth fund GIC and B Capital Group, which has a strategic partnership with Boston Consulting Group, led FalconX’s recent fundraising round. Other participants included Thoma Bravo, Wellington Management, Adams Street and Tiger Global Management.

“As a tech-first infrastructure platform for digital assets, FalconX offers a holistic product offering paired with unparalleled execution, supporting over 70 million transactions monthly,” said Rashmi Gopinath, general partner of B Capital Group, in a statement Wednesday. “They are well positioned to lead the ongoing institutional transition to digital assets for years to come.”

The new funding comes as crypto prices have dropped significantly over the past few weeks. Bitcoin’s price was around $20,400 early Wednesday morning, down 32% from a month ago, according to data from Blockworks. The collective market value of the cryptocurrency has fallen by 30% during this time.

But despite the decline, which has prompted crypto firms like Gemini, Coinbase, and to pause or slow hiring efforts, FalconX plans to continue hiring.

Open positions include Product Managers, Engineers, Analysts, Salespeople and a Head of Human Resources for Americas and Europe.

Yarlagadda told Blockworks that bear markets are the best time to start a business.

“We’ve emerged from every market downturn significantly stronger by doubling our product and talent capabilities,” he said. “In this broader market downturn, we continue to see A-plus talent excited about crypto, and we’re excited at the prospect of adding more talented team members.”

The company hired Suzy Walther, former Carta chief people officer and Bloomberg talent director, as its hiring manager in February to fill hundreds of positions in engineering, marketing, human resources and account management.

FalconX also brought on board former Pinterest and Google exec Jon Kaplan as head of revenue later this month.

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  • Ben Strack

    Ben Strack is a Denver-based reporter covering macro and crypto native funds, financial advisors, structured products, and the integration of digital assets and decentralized finance (DeFi) with traditional finance. Before joining Blockworks, he covered the wealth management industry for Fund Intelligence and was a reporter and editor for various local Long Island newspapers. He graduated from the University of Maryland with a degree in journalism. Contact Ben via email at [email protected]

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