Crypto finance startup Amber Group raises $ 100 million for $ 1 billion valuation – TechCrunch
More mainstream venture capitalists are entering the crypto movement as investors increasingly view bitcoin as an investment asset, despite recent massive price declines for a few major cryptocurrencies. . Amber Group, a Hong Kong-based cryptocurrency trading start-up, said on Monday it had raised $ 100 million in a Series B funding round at a pre-currency valuation of $ 1 billion.
The latest valuation is ten times that of the company’s Series A which closed in 2019, a $ 28 million round that counted Coinbase Ventures among its investors. Additionally, in particular, Amber’s Series B funding was funded by a list of leading financial and venture capital firms, including China Renaissance, which led the round, and Tiger Brokers, Tiger Global Management, Arena Holdings, Tru Arrow Partners, Sky9 Capital, DCM Ventures, and Gobi Partners.
Its former investors Pantera Capital, Coinbase Ventures and Blockchain.com also participated in the round.
In May, Babel Finance, another Hong Kong-based crypto asset manager, secured $ 40 million in funding from a number of high profile institutional investors, including Amber investor Tiger Global. .
Founded by a group of former investment bankers in their twenties, Amber originally planned to apply machine learning algorithms to quantitative trading, but in 2017 pivoted to crypto when the team saw spikes in virtual currency trading volumes. The startup now serves institutional and individual investors, offering them algorithmic trading, electronic market making, high frequency trading, OTC trading, borrowing and lending, derivatives, among other products.
The company launched its mobile app in the third quarter of 2020, expanding its reach from institutional clients to retail consumers. He said the trading app has so far accumulated more than 100,000 registered users.
Amber has been profitable since its inception, according to co-founder and CEO Michael Wu, with annualized revenue of $ 500 million based on figures from January through April 2021.
The startup has had “record months in the last quarter in terms of customer flow and market making volumes on the stock market,” Wu said, and it now accounts for “2-3% of total trading volume on the stock market. main spot and derivative markets “. Its cumulative transaction volumes have doubled from $ 250 billion since the start of the year to more than $ 500 billion. In total, it manages around $ 1.5 billion in trading capital which varies based on BTC and ETH prices.
Amber has more than 330 employees worldwide in Hong Kong, Taipei, Seoul and Vancouver. The proceeds of its B series will go to global expansion.