Sunday, 22 December 2024
Sygnum raises over $40M in interim close of oversubscribed funding round
Global digital asset banking group Sygnum announced that it has raised more than $40 million against an initial $35 million target in an interim close of its latest funding round, which is named the Strategic Growth Round.
As of the completion of this interim close the company’s post-money valuation stands at $900 million.
• The Strategic Growth Round will provide the group with additional financing to expand into new markets and further extend its suite of regulated products and services in order to take advantage of the increasingly positive market developments in the digital asset industry
• The round is oversubscribed and, as of this interim close, has already raised more than $40 million against the company’s original $35 million target, with Azimut Holding, a global asset management group, as the lead investor
• This latest fundraise came on the back of Sygnum’s strong financial and operational performance, and expanded regulatory footprint, which has been achieved during the “crypto winter”. Sygnum closed 2023 with a $100 million+ annualised revenue run rate and achieved positive cash flow in the fourth quarter
Global asset management group Azimut Holding is the lead investor for the round and are joined by other new and existing strategic and financial investors. Consistent with prior fundraising rounds, the Strategic Growth Round also saw Sygnum employees participating as personal investors on the same terms. Sygnumers, together with the co-founders, board members and management team continue to hold majority ownership of the company.
Proceeds from this financing round will be used to expand Sygnum’s geographic reach into new markets and accelerate the development of Sygnum’s fully regulated products such as its B2B (bank-to-bank) platform, which now powers the crypto offering of over 15 banks and financial institutions globally. In April 2023, Sygnum announced a partnership with PostFinance, one of Switzerland’s largest retail banks, to bring a range of bank-grade digital asset services to millions of Swiss customers. In November 2023, Sygnum Singapore inked a deal with the Singapore arm of 174-year-old private bank Bordier & Cie, expanding an existing partnership that began in 2021 in Geneva.
Since its last successful Series B fundraise, Sygnum’s assets under administration have grown to over $4 billion, with a client base of over 1,700 from more than 60 countries. To support the company’s increasing client activity and operations, the group continued to grow its global team through the “crypto winter”, now nearing 250 team members. Outside of Switzerland and Singapore, the group is also licenced to operate in the UAE and Luxembourg.
Giorgio Medda, CEO of Azimut Holding, said: “We are pleased to have led Sygnum’s Strategic Growth Round fundraising at this topical moment when the demand for well-regulated, institutionalised services in crypto looks set to surge in 2024.
Sygnum has been a group key partner since 2021 as, first in Europe, we have developed together the first tokenisation of a private credit portfolio to benefit our alternative investment funds asset allocation. From the beginning, we have appreciated the team's expertise and high degree of innovation. We strongly believe in the evolution of technology and its positive impact on the investments industry, so we are delighted to contribute to the growth of Sygnum in a round that strengthens its position as a leading financial institution in the digital asset sector."
Mathias Imbach, co-founder and group CEO said: “Closing a successful funding round in this macro environment with such strong partners is exciting, and we are thankful for our investors’ trust in us. Our core thesis has always been that 'Future has Heritage' and our strategy to build trust via regulation and good governance has guided us throughout all market cycles. We look forward to continuing to empower everyone everywhere to own digital assets with complete trust.”
Gerald Goh, co-founder and CEO Singapore, added: “This fundraising round is testament of Sygnum’s strong and unique position as a leading regulated financial institution in the global digital asset industry. The broader industry is emerging from the ‘crypto winter’ and investors and market participants are increasingly seeking to partner with trusted and well-managed financial institutions. For Sygnum, this fundraise will allow us to further build out our suite of fully regulated solutions to support investors as they increase their exposure to the asset class.”
Re-disseminated by The Asian Banker
