The Switzerland-based crypto bank closed a strategic growth round worth USD 40 million. Following the completion of this interim round, the company's valuation stands at USD 900 million.
The funding round provides Sygnum Group with additional financial resources to expand into new markets and further develop its range of products and services. The round was oversubscribed and has raised more than USD 40 million at the time of the preliminary closing against the original target of USD 35 million. Azimut Holding, a global asset management group, led the round.
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An early end to the crypto winter?
According to Sygnum, this latest capital raise follows the banking group's strong financial and operational performance and expanded regulatory footprint achieved during the "crypto winter." The crypto bank said it closed 2023 with an annualized revenue run rate of over USD 100 million and achieved positive cash flow in the fourth quarter.
"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. 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." - Giorgio Medda, CEO of Azimut Holding
In line with previous funding rounds, employees also participated in the strategic growth round as personal investors on the same terms. Employees of brypto bank, together with the co-founders, the members of the Executive Board and the management team, hold a majority stake in the company.
Further expansion abroad
The proceeds from this funding round are intended to be used to expand Sygnum's geographic reach into new markets and accelerate the development of its fully regulated products. To date, the crypto bank's focus has been on Switzerland and Singapore. Outside of these two jurisdictions, the group is also licensed in the United Arab Emirates and Luxembourg.
Since the last Series B funding, the crypto bank's assets under management have grown to over USD 4 billion, with a client base of over 1,700 clients from more than 60 countries. To support the company's increasing client activity and operations, the group has continued to grow its global team during the market downturn and is now approaching 250 team members.