Finoa Raises $15 Million in Strategic Funding Round
Finoa, a Germany-based crypto custodian and staking services provider, has raised $15 million in a strategic funding round co-led by Maven 11 Capital and Balderton Capital. Other investors in the round include Blue Bay Ventures, Signature Ventures, Coparion, and Venture Stars. The equity round began in June 2021 and closed in December. Finoa initially aimed to raise $5 to $6 million but ended up raising more due to interest from external investors as the firm returned to profitability.
Finoa’s Path to Profitability
Founded in 2018, Finoa faced losses in 2021 and 2022 due to challenging market conditions and crypto collapses. However, with the recent market rebound and growth in its staking business, Finoa returned to profitability in Q4 of 2023. Finoa Consensus Services, the firm’s staking unit, has amassed over €500 million ($547 million) in assets since launching in May 2022. The staking unit now contributes almost 60% of Finoa’s total revenue.
New Service and Competitors
Finoa recently introduced FinoaConnect, a service that gives clients access to decentralized finance (DeFi) applications through its custodial wallet infrastructure. As a qualified custodian with licenses from the German Federal Financial Supervisory Authority, Finoa competes with firms like Fireblocks and Anchorage. Despite downsizing its staff over the past two years, Finoa currently employs around 50 people.
Hot Take: Finoa Secures $15 Million in Funding for Growth
Germany-based crypto custodian and staking services provider Finoa has raised $15 million in a strategic funding round led by Maven 11 Capital and Balderton Capital. The funding round, which began in June 2021 and closed in December, exceeded Finoa’s initial target due to the interest from external investors. Finoa returned to profitability in Q4 2023 after facing losses in the previous two years. Its staking business has been a significant driver of revenue, with the staking unit now contributing nearly 60% of the firm’s total revenue. Finoa’s new service, FinoaConnect, is expected to generate additional revenue once it is fully launched.
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