Cryptocurrency wallet provider ZenGo is raising funds in a Series A extension round.
The Israel-based startup hopes to raise $10 million via convertible notes before targeting a full Series B round later this year, according to a pitch deck obtained by The Block.
The Series A extension is pegged at the same $100 million post-money valuation as ZenGo's Series A round nearly two years ago, according to a separate pitch message seen by The Block. ZenGo bagged $20 million in Series A funding in April 2021 from investors including Insight Partners, Austin Rief Ventures and Samsung Next. It did not disclose a valuation at the time.
"We routinely talk to investors all the time that express interest in our company but cannot comment further on any rumored operation,” ZenGo co-founder and CEO Ouriel Ohayon said.
Rising self-custodial wallets
The fundraising effort comes as non-custodial wallets have risen in popularity following last year's high-profile crypto collapses, including FTX, Celsius and BlockFi. ZenGo offers a software wallet that helps users self-custody their crypto holdings rather than trust centralized players. It saw record downloads following FTX's November bankruptcy, which froze billions in client funds.
“ZenGo was built for a moment like this,” Ohayon said in a statement at the time. “For years we’ve focused on creating the most secure non-custodial crypto wallet with no private key vulnerability, powered by next-gen MPC cryptography."
MPC stands for multi-party computation; the technology is often used in self-custody tools where multiple devices can validate a transaction, removing the potential for a single point of failure.
ZenGo currently has over 800,000 registered users and targets 2 million users this year and $1 million to $2 million in annual revenue, according to the deck.
Several crypto wallets have announced fresh funding rounds in recent weeks. These include OneKey raising at an $85 million valuation, Blocto raising at an $80 million valuation and Exodus raising over $59 million in a share subscription.
Updates with the latest number of registered users.
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