New York-based AlphaPoint, which provides the technical infrastructure to crypto exchanges and brokers, has bagged $5.6 million in fresh capital.
It's a bridge financing round, AlphaPoint co-founder and CEO Igor Telyatnikov, told The Block. This type of financing is generally sought to fulfill a company's short-term working capital needs.
Telyatnikov said it took "only a few months" to close the round and that the majority of the funds came from new investors who wish to remain undisclosed. When asked if existing investor Galaxy Digital Ventures participated in the round, Telyatnikov said it indeed did.
AlphaPoint previously raised $15 million from billionaire Mike Novogratz's Galaxy Digital Ventures in 2018. Today's round brings AlphaPoint's total funding to date to $23.9 million, the firm said.
Telyatnikov declined to share valuations, but said AlphaPoint took in over $10 million in revenues last year and has "grown every year consecutively for our almost 7-year history" since founding in 2013.
AlphaPoint plans to utilize the fresh capital to scale its white-label exchange software and offer new exchange features later this year, Telyatnikov told The Block. "These new features will enable our customers to have deeper liquidity pools, offer leverage, lending and credit capabilities," he said.
CME Group, bullion trading platform The Royal Mint and private equity real estate investment firm Muirfield Investment Partners are some of AlphaPoint's existing customers.
"We added dozens of customers in 2018 and 2019 and see increased demand so far this year," Telyatnikov told The Block. Some recent client additions include tokenization platform Elevated Returns, Brazilian broker-dealer XP Securities and General Atlantic-backed Brazilian crypto exchange XDEX, said Telyatnikov.
"Additional new customers will be announced soon," but "we are [more] focused on delivering capabilities for our existing customers to grow and capture market share in their markets," Telyatnikov added.
There are currently about 50 people working for AlphaPoint, with the majority in development and technology roles, said Telyatnikov, adding that the firm is now hiring for development and technical operations positions.
As for whether AlphaPoint will raise more funds in the near future, Telyatnikov said: "We are always open to strategic capital to fuel our continued growth."
AlphaPoint has today also expanded its board of directors and advisory board. The firm has appointed Tim Scheve, president and CEO of financial services firm Janney Montgomery Scott, who also serves on the FINRA [Financial Industry Regulatory Authority] Board of Governors. It has also hired Jan Mayle, CEO and founder of consulting firm The Mayle Group, as an advisor.
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