FalconX Valuation Doubles to $8B Despite Crypto Market Turmoil

key takeaways

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

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

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

“The investment will allow us to further accelerate growth by looking at [merger and acquisition] opportunities that add strategic value to our existing core offerings,” FalconX CEO Raghu Yarlagadda told Blockworks. “We’ll continue to expand our product offering, doubling down on our market-leading reliable infrastructure and enabling new markets for our institutional customers.”

Launched in 2018, FalconX allows institutions to manage their crypto strategies through a single interface to execute trading, credit and clearing. Its crypto-as-a-service offering allows banks, fintech firms 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 brokerages that does not take on market risk — meaning that FalconX is not in conflict with its clients and their trading strategies.

“In light of recent market conditions, this is extremely valuable to our clients 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 latest fundraising round. Other participants were Thoma Bravo, Wellington Management, Adams Street and Tiger Global Management.

“As a tech-first digital asset infrastructure platform, FalconX provides a holistic product offering paired with unparalleled execution that supports over 70 million transactions on a monthly basis,” B Capital Group General Partner Rashmi Gopinath said in a Wednesday statement. “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 in recent weeks. Bitcoin’s price was roughly $20,400 early Wednesday morning, according to data compiled by Blockworks — down 32% from a month ago. Cryptocurrency’s collective market value has fallen 30% in that time.

But despite the drawdown, which has led crypto firms such as Gemini, Coinbase and Crypto.com to pause or slow hiring efforts, FalconX plans to continue adding employees.

Open roles include product managers, engineers, analysts, traders and a director of people for the Americas and Europe.

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

“With each market downturn, we have emerged significantly stronger by doubling down on product and talent,” he said. “In this broader market downturn, we continue to see A-plus talent excited about crypto, and we’re excited by the prospect of having more talented team members join us.”

The firm hired former Carta chief people officer and Bloomberg head of talent Suzy Walther as its head of people in February amid a push to fill hundreds of roles across engineering, marketing, human resources and customer support.

FalconX also brought aboard former Pinterest and Google executive Jon Kaplan as its head of revenue later that month.

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