Crypto Analytics Firm Kaiko Secures 53M in Series B Funding Round

Kaiko, a Paris-headquartered blockchain data analytics firm, has secured $53 million in a Series B funding round. Bloomberg reported earlier today, noting that Eight Roads led the funding round alongside French VC Revaia. The financing round also attracted investments from existing investors like Alven, Point Nine, Anthemis, and Underscore.

The company’s Series B round comes amid one of the harshest bear markets in the history of cryptos. According to a Kaiko spokesperson, this funding round has tripled the firm’s valuation since the Series A round in June 2021. The spokesperson, however, declined to disclose exact figures.

Kaiko plans to use the $53 million to expand the headcount of its workforce to around 60 employees. Specifically, the firm plans to add more staff in its London, Paris, Singapore, and New York offices.

Bear Market Casts Doubt on the Viability of Crypto-related Investments

Although Kaiko does have direct exposure to crypto tokens, the bear market has not left it unscathed. Kaiko CEO Ambre Soubiran claims the past two months have been “a marathon.” According to her, investors are exercising more caution before injecting funds into crypto-related businesses.

She continued,

What was challenging, in all honesty, was the due diligence and closing process because we were really, really under scrutiny. They went into many, many details to make sure that there was barely any risk in the investment.

Soubiran said she had to convince investors that their investments could withstand a lengthy bear market. She pointed to the financial woes of crypto companies, saying they have made investors overly wary.

The Kaiko executive added,

Building the narrative around the series B pitch was not the hardest part. The hardest part was getting the whole thing across the finish line in the middle of a minus 80% downturn.

However, Soubiran says the crypto winter has been beneficial to Kaiko’s business. She explained that the company’s customers – which include Deutsche Boerse, ICE Global Network, Messari, and Paxos, to mention a few – have been increasingly requesting information about why the market is tanking.

VCs are Saying Yes to Promising Crypto Firms

According to Alston Zecha, a partner at Eight Roads, VCs are slowing down regarding crypto investments. However, he claims the companies are not turning down opportunities to invest in promising firms.

Kaiko’s has closed its Series B round days after institutional crypto trading platform FalconX raised $150 million in a Series D funding round. The GIC B Capital-led round saw the company’s valuation rose to $8 billion. FalconX previously secured $210 million at a $3.75 billion valuation in August last year.

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FalconX’s latest financing round proves VCs have raised the bar and are only investing in companies that can withstand lengthy bear markets.

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