Key Takeaways
- • FalconX, a cryptocurrency financial services company serving institutions across trading, credit, and clearing, announced a $50 million investment led by Tiger Global and B Capital Group, according to a Business Wire release dated March 11, 2021.
- • The company reports its net revenue grew 46X and its trading volume grew 12X over the past year, which it attributes to institutional demand for crypto as an inflation hedge.
- • FalconX states it is profitable, citing strong unit economics and high growth margins.
- • The credit product's volumes exceeded $3 billion in Q4 2020, according to the company.
- • Existing investors Accel, Accomplice VC, American Express Ventures, Coinbase Ventures, CMT Digital, Flybridge Capital Partners, Lightspeed Venture Partners, and Avon Ventures (affiliated with FMR LLC) participated alongside the new investors.
Summary
FalconX, a cryptocurrency financial services company, announced a $50 million investment from Tiger Global and B Capital Group, according to a Business Wire release. Existing investors Accel, Accomplice VC, American Express Ventures, Coinbase Ventures, CMT Digital, Flybridge Capital Partners, Lightspeed Venture Partners, and Avon Ventures, a venture capital fund affiliated with FMR LLC, the parent company of Fidelity Investments, also participate in the company's backing. The company describes itself as an all-in-one platform for institutional trading, credit, and clearing in cryptocurrencies.
The company reports that over the last year its net revenue grew 46X and its trading volume grew 12X. FalconX attributes this growth to institutional investors seeking an inflation hedge in what it describes as an unprecedented macroeconomic environment. Its growth client segments include Fortune 1000 corporate treasuries, family offices, registered investment advisors, and other traditional enterprises. The company also states that it is profitable, citing strong unit economics and high growth margins.
FalconX says its platform offers 99.999% uptime and 24/7/365 coverage, and that institutions use it to execute large orders with discretion and limited price impact without exposing orders on exchange order books. Its credit product, which allows qualified clients to earn yield and trade on margin, saw volumes rise to over $3 billion in Q4 2020, per the company.
Scott Shleifer, Partner at Tiger Global, said FalconX is positioned to be an industry leader in the institutional cryptocurrency market. Raghu Yarlagadda, FalconX CEO and co-founder, said he expects all institutional investors and corporate treasuries to hold digital assets within five years, and cited Coinbase's public offering as a defining moment for the industry.
The company says the new funds will be used to scale its team and expand its business lines. FalconX has offices in Silicon Valley, Bengaluru, and Malta.
The company reports that over the last year its net revenue grew 46X and its trading volume grew 12X. FalconX attributes this growth to institutional investors seeking an inflation hedge in what it describes as an unprecedented macroeconomic environment. Its growth client segments include Fortune 1000 corporate treasuries, family offices, registered investment advisors, and other traditional enterprises. The company also states that it is profitable, citing strong unit economics and high growth margins.
FalconX says its platform offers 99.999% uptime and 24/7/365 coverage, and that institutions use it to execute large orders with discretion and limited price impact without exposing orders on exchange order books. Its credit product, which allows qualified clients to earn yield and trade on margin, saw volumes rise to over $3 billion in Q4 2020, per the company.
Scott Shleifer, Partner at Tiger Global, said FalconX is positioned to be an industry leader in the institutional cryptocurrency market. Raghu Yarlagadda, FalconX CEO and co-founder, said he expects all institutional investors and corporate treasuries to hold digital assets within five years, and cited Coinbase's public offering as a defining moment for the industry.
The company says the new funds will be used to scale its team and expand its business lines. FalconX has offices in Silicon Valley, Bengaluru, and Malta.
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