Amber Group, a Hong Kong-based cryptocurrency trading startup, announced on December 16th in a Twitter thread that it has completed a $300 million Series-C financing that was backed by family offices and other crypto-native investors, including Fenbushi Capital US.
While investors increasingly view Crypto as an investable asset, despite the large price losses of major cryptocurrencies and the recent collapse in crypto markets, more conventional venture capital companies are joining the crypto bandwagon.
At the time of the Series B investment round, it had a pre-money valuation of $1 billion and raised $100 million. The company’s Series A round, which raised $28 million and included Coinbase Ventures as one of its investors, ended in 2019. The value was ten times more than that amount.
Another noteworthy fact is that a number of prominent financial and venture capital firms, including China Renaissance, supported Amber’s Series B investment.
However, the company said in the Twitter thread:
This new round of fundraising demonstrates investor confidence in Amber’s business and the commitment to shape our future together. As part of that future, it’s important for us to adapt and protect our clients in this challenging market environment.
FTX Collapse Affects On Amber Group
In anticipation of a possibly lengthy crypto winter, Amber was working to finish an extension to its “Series B+ at a $3B valuation” prior to the collapse of FTX. It halted after a partial closing following the FTX collapse and then continued with Series C.
The FTX crisis affected Amber, just like it did other cryptocurrency trading companies. Although they did need to rebalance certain holdings, the company claimed that less than 10% of its total trading capital was with FTX when it collapsed.
According to the company’s statement:
While the vast majority of our clients and products remain intact, a few of our specific products would have experienced significant drawdowns as an aftermath of the FTX default, unless we could find ways to further protect those affected clients.
Because of this, they rapidly changed their fundraising plan. Additionally, the Series C investors understand that they are required to focus their efforts on providing top-notch services to their clients.
In order to concentrate on their core clientele and business areas, they will be reducing their mass consumer initiatives in the future. Moreover, with the support of their investors, their top priority for 2023 is to concentrate on their main customers and business.
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