Key Points:
Hidden Road Partners seeks $120 million in Series B funding, eyeing a $1 billion valuation, specializing in crypto and forex brokerage.
The firm previously raised $50 million and offers prime brokerage services across various markets, including digital assets.
The rise of Hidden Road mirrors a growing demand for crypto prime brokers amidst market challenges.
Hidden Road Partners, a prime brokerage firm specializing in cryptocurrency and foreign exchange, is in the process of raising Series B equity financing, according to Bloomberg.
Hidden Road Partners Targets $1 Billion Valuation in Series B Funding Round
The funding round is expected to increase the company's valuation to approximately $1 billion, with aims to raise around $120 million.
Founded in 2018 by Marc Asch, a former executive at hedge fund giants SAC Capital and Point72 Asset Management, Hidden Road Partners has quickly made a mark in the financial world. Previously, the firm closed a $50 million financing round in 2022.
Offering prime brokerage services across various markets, including foreign exchange, precious metals, and digital assets, Hidden Road Partners has positioned itself as a key player in the rapidly evolving landscape of cryptocurrency finance.
The rise of crypto prime brokers like Hidden Road and its competitor FalconX has been notable, particularly following the collapse of the FTX exchange. These firms take on counterparty risk on behalf of clients, providing crucial services like financing, which has been in high demand as the crypto market recovers from the fallout of lending firm failures in 2022.
Crypto Venture Capital Surges, Signaling Recovery for Startup Ecosystem
Moreover, amidst signs of a resurgence in crypto venture capital, with investments totaling $2.5 billion globally in the past quarter, according to PitchBook, startups in the space are regaining momentum.
This influx of capital comes at a crucial time, as many startups had to navigate through the challenges of the recent crypto winter, leading to cutbacks and project restructuring. The recent funding activity signals a promising trend for the crypto startup ecosystem.
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