Stephanie Douse 
Crypto brokerage FalconX is the latest cryptocurrency firm to secure $15oM in fresh funding raising its valuation to $8B.
Venture capital firms keep investing in significant market participants like FalconX despite the persistent unfavorable trend in bitcoin markets.
The institutional-level cryptocurrency trading and digital asset platform FalconX has raised $150 million in new funding as part of its Series D financing round.
FalconX’s investment round, which was completed in early June, valued the company at $8 billion, more than tripling its previous Series C-round valuation of $3.75 billion in August 2021, the company said on Wednesday. The company has already raised a total of more than $430 million.
The Singaporean sovereign wealth fund GIC and Facebook’s Eduardo Saverin-backed B Capital Group were the main investors in FalconX’s most recent funding round. Other investors included well-known businessmen and venture capital firms including Thoma Bravo, Adams Street, and Tiger Global Management.
According to CEO Raghu Yarlagadda, the new fundraising round will enable FalconX to open up new markets for its institutional clients and offer new solutions.
By looking at M&A prospects that add strategic value to our current core offerings, the investment will enable us to further accelerate growth. In the same vein, we want to bring in the best talent possible,” Yarlagadda continued.
The CEO of FalconX added that the present bear market has no effect on the business, saying:
“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 continued by saying that “all assets are deployed only within the FalconX platform” and that FalconX’s credit products are “over-collateralized” and backed by liquid collateral.
“This enables us to limit risk and have a good real-time picture of risk management. In certain market circumstances, we frequently observe greater engagement in market-neutral than directional strategies,” the CEO observed. FalconX has continued to experience significant client growth in the spot and derivatives markets, he added.
A few times after FalconX registered as one of the first cryptocurrency swap dealers with the US National Futures Association in April 2022, a funding round was announced.
The company recently joined the International Swaps and Derivatives Association as one of the first Primary Level Members with a focus on cryptocurrencies.