Crypto-native monitoring company Solidus Labs announced on Thursday that it has secured a $45 million Series B funding round, led by Liberty City Ventures. Additional funds participating in the round include Evolution Equity Partners which led Solidus’ Series A funding in May 2021, Declaration Partners, Hanaco Ventures, and Avon Ventures, a venture capital fund aliated with FMR LLC, the parent company of Fidelity Investments.
The round announced today also includes angel investor Brian Brooks, former U.S. Acting Comptroller of the Currency, as well as Plural Ventures, a venture community including among its members former CFTC Chairman Christopher Giancarlo and former CFTC Chief Innovation Officer Daniel Gorfine, who both invested in Solidus’ A round, and former New York State Department of Financial Services Executive Deputy Superintendent Matthew Homer.
The announcement comes on the backdrop of record-breaking crypto and DeFi adoption – with some estimates placing total value locked (TVL) in DeFi at more than $200 billion at the beginning of 2022 - but also record-breaking fraud, manipulation, and market abuse. In light of mounting regulatory and public pressure to protect users and investors and improve market integrity standards and investor protection in digital asset markets, Solidus reports massive demand for its solutions and has more than quadrupled its team since the beginning of 2021.
“For Web3 and the DeFi economy to truly fulfill their massive potential, there’s a need to mitigate new risks - both in terms of liquidity enablement and on the consumer and investor protection side. This is where Solidus’ crypto-native solutions come into play, and the reason we’ve been experiencing a 560% year-over-year revenue increase,” said Asaf Meir, Solidus’ Founder and CEO.
In March 2022, the firm unveiled its all-in-one crypto-native risk monitoring suite - titled HALO, which currently services dozens of leading crypto and DeFi platforms, financial institutions, and regulators, monitoring more than 1 trillion trading events per day in more than 150 markets and protecting upwards of 25 million crypto market participants and investors. The platform deploys over 50 different proprietary market abuse typologies, shielding investors and safeguarding crypto businesses from new threats unique to the crypto and decentralized finance space.