Germany-based crypto custody and staking services provider Finoa has successfully raised $15 million in a strategic financing round co-led by Maven 11 Capital and Balderton Capital. The announcement made by the Finoa team on January 9th also mentioned other investors in the round, including Blue Bay Ventures, Signature Ventures, Coparion, and Venture Stars.
Key Details of the Investment Round
Finoa’s co-founder and CEO Christopher May stated in an interview that the capital round started in June 2023 and was completed in December. May highlighted that Finoa initially aimed to raise $5 to $6 million from existing investors, but the company’s recent profitability led to increased interest from investors, resulting in a larger sum.
The strategic investment round comes nearly three years after Finoa’s April 2021 Series A funding round, where they raised $22 million. May explained that Finoa did not go through a large Series B round last year due to tough market conditions, opting instead for a smaller strategic round to fuel growth.
The CEO mentioned that Finoa, founded in 2018, was profitable until 2021, but faced losses in the following two years due to challenging market conditions and bankruptcies in crypto companies. Taking into account the recent market recovery and growth in staking services, May added that Finoa closed the fourth quarter of 2023 with a profit.
Noteworthy Moves by the Company
Finoa’s staking department, Finoa Consensus Services, has gathered over 500 million euros in assets since its launch in May 2022. May pointed out that the staking department currently accounts for nearly 60% of Finoa’s total revenue.
According to data from Nodes Guru, the firm supports staking services for more than ten blockchain networks and is the third-largest validator for the modular blockchain network Celestia. May also noted that the company’s flagship crypto asset custody business makes up about 30% of the company’s revenue, with the remainder coming from brokerage and other services.
Finoa recently introduced a new service called FinoaConnect, a custody wallet infrastructure that will provide customers with access to decentralized finance or DeFi applications. May mentioned that this service is currently in the trial phase and is expected to generate additional revenue for the company once it is fully operational.
