FalconX Raises $150M at $8B Valuation

Digital asset prime brokerage FalconX raised $150 million in a Series D financing round, giving the platform an $8 billion valuation, which is more double its valuation from its previous financing.

• GIC and B Capital led the round. Additional investors included Thoma Bravo, Wellington Management, Adams Street Partners and Tiger Global Management. In August, FalconX raised $210 million in a Series C round, pegging the company at a $3.75 billion valuation.
• FalconX says its platform has remained strong through the market storm and the first quarter was its best ever in terms of gaining new customers.
• "Our valuation is a reflection of the long-term belief from our investors and conviction in the digital assets market," CEO Raghu Yarlagadda told CoinDesk. "We’re one of the few companies that has consistently been profitable, exhibited revenue, customer growth and navigated volatile market conditions with strong operating rigor and risk management."
• Yarlagadda added that FalconX is market neutral and doesn't take directional risk. "The last few months have been extremely important to demonstrate why being market risk neutral is super important."
• He said the company is financially strong and growing as the firm's credit offerings are overcollateralized, backed by high quality and highly liquid collateral, and its assets are deployed only within the FalconX platform.
• Meanwhile, FalconX also said it continues to hire across the company despite multiple crypto firms slashing headcount amid the market downturn.
• In April, FalconX formally registered as a U.S. swap dealer, becoming the first of its kind to enter what Yarlagadda contended to be a massive, underserved market.

Read more: FalconX Tests Waters as First Full-Fledged Crypto Derivatives Dealer