After raising $50 million at a valuation near $700 million, crypto brokerage and trading startup FalconX is preparing to expand its customer base of deep-pocketed hedge funds.
According to chief executive Raghu Yarlagadda, who previously worked as a lead product manager for Google, the fresh capital will allow the company to expand its sales and marketing team to attract hedge funds that boast assets in excess of $1 billion. These types of firms have historically avoided the crypto market but have increasingly expanded their footprint in recent months.
Indeed, Tiger Global — a major hedge fund and venture capital investment firm — was among the lead participants in FalconX’s raise.
“We believe FalconX is positioned to be an industry leader in the institutional cryptocurrency market,” said Scott Shleifer, partner at Tiger Global.
Tiger Global, which recently closed a raise for a $3.75 billion private equity fund, has more than $36 billion under its management.
“When we began conversations with Tiger they were just interested in learning more about the space,” Yarlagadda said. “They know what it takes to be a one-stop shop for crypto trading and they went deep into the technology.”
Founded in 2018, FalconX exists in a crowded field of players looking to sit between big investors and the cryptocurrency market. Coinbase’s prime unit (formerly Tagomi), NYDIG, and DCG’s Genesis Global are all competing for this particular type of client.
Aside from the fresh injection of cash, FalconX can count a few tailwinds, including an already profitable business that’s