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

Despite the ongoing bearish trend in cryptocurrency markets, venture capital firms continue pouring capital into major industry players like FalconX.

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

Completed in early June, the funding round values FalconX at $8 billion, more than doubling from its previous Series C-round valuation of $3.75 billion in August 2021, the firm announced to Cointelegraph on Wednesday. The firm has now raised more than $430 million in total.

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

The new funding round will help FalconX enable new markets for its institutional customers as well as provide new products, CEO Raghu Yarlagadda told Cointelegraph. “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,” Yarlagadda added.

FalconX CEO also noted that the current bear market did not impact the company, stating:

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

“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,” the CEO noted. He also added that FalconX has continued to see strong client growth in spot and derivatives markets.

Related: Despite bearish trend, hedge funds are dipping their toes in crypto: PwC

The funding round comes shortly after FalconX became one of the first crypto swap dealers registered with the United States National Futures Association in April 2022. The firm also became one of the first crypto-focused primary level members of the International Swaps and Derivatives Association.