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Crypto Firm Fireblocks Raises $550M, With $8B Valuation

Crypto Firm Fireblocks Raises $550M, With $8B Valuation

The crypto security provided has raised a total of $550 million from institutional investors in one of the largest financing rounds in the crypto sector in the last few years. 

Funding Shoots Fireblocks To The Top

The latest investment round also quadrupled the valuation of the company from $2 billion to $8 billion and was led by D1 Capital Partners and Spark Capital. Other investors who participated in the fundraising were General Atlantic, Altimeter, Index Ventures, and Alphabet’s growth fund, CapitalG. 

The previous fundraising round for Fireblocks was in June 2021, where it raised $310 million at a company valuation of $2.2 billion. That itself was a significant jump, as the company was valued at $700 million in March 2021. 

However, the latest financing round has catapulted Fireblocks into the list of Israel’s most valuable privately held tech startups. Other startups that have been valued at over $8 billion are fintech companies like Rapyd and Tipalti and cybersecurity firm Snyk. 

CEO Talks Plans

Following the announcement, Fireblocks CEO Michael Shaulov spoke to Reuters about the fundraising, 

"We're going to use the capital for further investment into new use cases in the digital asset space such as decentralized finance, non-fungible tokens, gaming, entertainment, and music." 

He has also stated that less than 20% of the capital would be part of a secondary deal with existing shareholders selling stakes. 

Furthermore, Shaulov also stated that the goal of his company was to make every business a crypto enterprise. He also talked about the company’s network that connects its members to the digital currency capital markets and allows instant settlement of fund transfers. In fact, according to a recent Gartner report, one-fifth of major organizations will transact in digital currencies by 2024. This data indicates that 2022 is going to witness large-scale crypto adoption rates by major conglomerates and organizations.

Addressing concerns of safety, Shaulov also clarified that Fireblocks aims to focus on security while transferring funds, as most hacks happen while moving funds and not while storing them. 

SEC Chair Onboarded

The company had onboarded former SEC chairman Jay Clayton back in August 2021 to navigate the changing crypto market, especially around regulatory frameworks. Clayton had joined the team as the newest member of their advisory board to help in the development and deployment of solutions for the emerging digital asset infrastructure with his decades of experience in international finance, regulation, and capital market. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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