Digital assets data provider Kaiko has just completed a Series B fundraising event in which it pulled the sum of $53 million from both old and new investors.
As reported by Bloomberg, this latest funding round has helped Kaiko triple its valuation from its previous round completed in June 2021, despite no figures shared.
The Kaiko Series B investment round was led by Eight Roads, an affiliate of Fidelity Investments, known as one of the backers of Chinese retail behemoth, Alibaba Group Holding Ltd (HKG: 9988). Eight Roads was also joined by French venture capital firm Revaia and existing investors Alven, Point Nine, Anthemis, and Underscore.
The broader cryptocurrency ecosystem is not looking ripe for investments at this time as the global economic meltdown has caused a spasm of operational challenges for a number of blockchain startups. With many tilting towards insolvency and on the brink of declaring bankruptcy and a host of others laying off their staff, the general outlook is not an encouraging one for Venture Capital firms to inject their funds.
In an interview with Bloomberg, Kaiko Chief Executive Officer Ambre Soubiran said the past 2 months have been a marathon with respect to the fundraiser. She noted that investors wanted all due diligence to be followed as they questioned why they should back the company.
“What was challenging, in all honesty, was the due diligence and closing process because we were really, really under scrutiny,” she said. “They went into many, many details to make sure that there was barely any risk in the investment.”
While it is operating in an industry with troubled entities, Kaiko investors considered the foothold of the startup, and the value it brings to the digital currency ecosystem in the long term to finalize the stance about backing the firm.
Kaiko Funding to Help Strengthen Its Immunity
Unlike most companies operating in the digital currency ecosystem, Soubiran said the current market meltdown has largely helped in boosting demand for data as clients seek answers to factors dragging the market down.
While Kaiko will look to maintain its mutually beneficial relationship with its clients including Messari, Deutsche Borse, ICE Global Network, and Paxos amongst others, the recently injected capital will notably help it in achieving its core aims. The Bloomberg report pointed out that Soubiran will be looking at cementing channels that can bolster the startup’s profitability in the next couple of months.
Soubiran said Kaiko will use the latest cash injection to bolster its staff strength as it looks to expand its workforce in its offices in London, Paris, Singapore, and New York.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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