Leading cryptocurrency exchange FTX has raised $421 million in its recent Series B-1 funding round and a valuation of $25 billion according to its press release. Participants in the round included Temasek, Sequoia Capital, Ontario Teachers’ Pension Plan Board, via its Teachers’ Innovation Platform, Ribbit Capital, Lightspeed Venture Partners, and more. In all, there were 69 investors.
For a company that raised $900 million just three months ago in its Series B round, the new fund implicitly shows the exchange’s continued growth.
A Trademark of Excellence
In the two years since the establishment of FTX in the United States, the crypto exchange has proved it is well worth its onion.
The CEO of FTX, Sam Bankman-Fried, in his comments after the fundraising round said the firm was constantly seeking opportunities to enhance its offerings for digital asset investors. He noted that the Series B-1 round of the firm rode on the threshold of the company’s recent successes.
“For this round, we capitalized on those strides and were able to partner with investors that prioritize positioning,” he said.
How the fund will be used
Indeed, FTX has done remarkably well for a fintech startup. Recall that Coinrise reported that FTX was relocating its headquarters to the Bahamas due to crippling regulations elsewhere. The company also obtained a regulatory license from Gibraltar and recently launched its NFT Marketplace, the FTX NFTs.
These are just a few of the products that the exchange is offering. With the new funds, the company will be able to expand its jurisdiction, operations into new territories. The firm will also use the funds to improve its current offers and establish itself as a leading face in the marketplace.
In a separate comment, Ramnik Arora, Head of Product at FTX said, “The additional capital and group of investors will let us provide the experience our users deserve and address other adjacent market opportunities including equities, prediction markets, NFTs and videogame partnerships.”
FTX Regulatory Compliance: A Winning Formula
General Partner at IVP, Tom Loverro, has this to say, “FTX has that rare combination of a visionary founder, impeccable execution and an exploding market. They also take regulatory compliance and engagement seriously.”
Similarly, Amy Wu, General Partner at Lightspeed Venture Partners stated, “FTX will continue to be a leader in powering crypto transactions across financial services and consumer businesses.” This he said was owing to their thoughtful approach to working with regulations in over 150 jurisdictions.