The Blockchain security firm has raised $88 million in its latest round of funding, pushing its valuation to $2 billion.
Investors Betting On Cybersecurity Firm
The growing rate of cybercriminals infiltrating the crypto space has clearly woken investors up to the value of cybersecurity. Therefore, it is no surprise that the blockchain security firm CertiK managed to draw an assortment of investment giants to participate in its latest Series B3 funding round. The $88 million raised was co-led by Insight Partners, Tiger Global, and Advent International. Other prominent names contributing to the funding round were Goldman Sachs, Sequoia Capital, and Lightspeed Venture Partners.
Valuation Doubled In 3 Months
In December 2021, CertiK conducted its Series B2 funding round, where it raised $80 million, with a company valuation of $1 billion. The funding was led by Sequoia Capital China with participation from already existing investors such as Coatue Management, Tiger Global, and GL Ventures, which is Hillhouse Capital’s VC Arm. At that point, the amount raised was the largest fundraising for any company in the blockchain space. The Series B3 round, however, puts the company’s valuation at $2 billion, which is double what it was just three months ago.
Blockchain Security Firm On The Rise
CertiK’s co-founder Ronghui Gu credits the jump in valuation to an increase in demand for its services, which has led to the firm’s growing revenue. The firm has reported that cybercriminals had stolen over $1.3 billion in crypto assets in 2021. In 2022, the number has already reached $1 billion. Therefore there is a significant demand for blockchain security services in the space right now. Reportedly, CertiK’s revenue increased 12 times last year, with profits growing 3000 times. However, Gu declined to share the exact performance metrics since it is a private company.
CertiK’s Expansion Plans
The security firm has already got several crypto bigwigs on its client roster, like Aave, Polygon, Terra, etc. it claims to have protected over $300 billion worth of crypto assets by working with over 2500 enterprise clients. Gu has stated that the capital from the latest funding round will be channeled to enhance the firm’s security offerings and become “the one-stop vendor for all project needs.” In addition, the team is looking to expand by hiring new talent for engineering and business development positions. With a cumulative $240 million raised in funds over multiple rounds, Gu has stated that CertiK will not be conducting any more funding rounds soon and rejected all talks of an IPO round.
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.
