German-based crypto custodian and staking services provider, Finoa, successfully raised $15 million in strategic funding from investors such as Maven 11 Capital and Balderton Capital. This recent round of funding maintained Finoa's valuation at $100 million, aligning with its Series A valuation in 2021.
The funding round, which commenced in June 2023 and concluded in December, attracted various investors, including Blue Bay Ventures, Signature Ventures, Coparion, and Venture Stars. Although Finoa initially sought $5 to $6 million from existing investors, the overwhelming interest from external parties, combined with the company's recent return to profitability, led to a higher investment.
Finoa experienced profitability until 2021 but encountered losses in subsequent years due to market challenges and crypto market downturns. However, with the market's recent resurgence and significant growth in its staking business, the company regained profitability in Q4 of 2023.
Finoa's staking unit, Finoa Consensus Services, has amassed over 500 million euros (approximately $547 million) in assets since its launch in May 2022. This unit now contributes nearly 60% to Finoa's total revenue. Additionally, Finoa, a third-largest validator for Celestia blockchain, supports over ten blockchains for staking. The company's custody business accounts for about 30% of revenue, with the remainder generated from brokerage and other services.
Differentiating itself from competitors like Fireblocks and Anchorage, Finoa stands out as a qualified custodian in Europe, holding licenses from the German Federal Financial Supervisory Authority.
Presently employing approximately 50 people, Finoa does not have immediate plans for aggressive hiring. Over the past two years, the company downsized its staff due to market conditions, having once employed over 100 individuals in 2021.
As part of this strategic funding round, Balder Bomans, managing partner at Maven 11, joined Finoa's board as an observer, signifying a promising trajectory for the company's growth and strategic direction.