Evolution Equity Partners is leading the round, which also includes prominent financial institutions and former CFTC and SEC leaders
NEW YORK, NY / ACCESSWIRE / May 24, 2021 / Crypto-native risk monitoring and market surveillance leader Solidus Labs announced today it has secured $20 million as part of its series A funding round, led by Evolution Equity Partners. Additional participating investors include Hanaco Ventures, which led Solidus Labs' seed funding round in early 2019, 645 ventures, leading crypto exchange FTX and Avon Ventures, a venture capital fund affiliated with FMR LLC, the parent company of Fidelity Investments.
This funding round also includes angel investors with vast regulatory, compliance, capital markets and cybersecurity experience. These participants include former CFTC Chair Christopher Giancarlo, former SEC Commissioner Troy Paredes, former CFTC Chief Innovation Officer Daniel Gorfine, StarCompliance Founder Marc Epstein, International Securities Exchange Founder David Krell, AngelList Founder Naval Ravikant, SecurityScorecard Founders Sam Kassoumeh and Aleksandr Yampolskiy, serial entrepreneur Jeff Fagnan and Takoma Group Founder Alex Acree.
Nasdaq Tower in Times Square, Congratulating Solidus Labs on its $20 million A Round
"Crypto and digital assets aren't just transforming financial services, they're also driving a major transformation in how capital markets, and finance as a whole, will be regulated" said Asaf Meir, Solidus Labs' Founder and Chief Executive. "As both innovators and regulators strive to harness these new technologies and make finance more accessible, transparent and efficient, crypto has also exposed the soft underbelly of legacy risk monitoring solutions, which Solidus Labs addresses"
The additional funding will enable Solidus Labs to continue developing its technology, designed to enable the merits of digital assets and blockchain, while mitigating the new risks they introduce, and extending their reach and impact. Meir notes the company plans to significantly expand its Tel Aviv and London R&D offices in order to address the demand for its solutions, as well as to grow its sales, regulatory affairs and product teams. Solidus Labs also intends to open offices in East Asia and other high-demand markets.
In a study published in March, Citigroup named Solidus Labs a category-definer for crypto market surveillance. Meir founded the company in 2018 with CTO Praveen Kumar and COO Chen Arad, bringing together a team of former Goldman Sachs engineers and cyber security veterans to bridge the regulatory, risk and compliance gap between crypto and digital assets and the traditional financial world.
The New York-based firm seeks to transform financial risk monitoring, beginning with the new challenges posed by crypto and digital asset markets. Solidus' clientele includes world-leading crypto firms as well as traditional financial institutions and regulatory agencies. The firm reports a 400% increase in inbound demand for its solutions in 2020, including a 10X spike in interest from banks and traditional financial institutions.
"We've been deeply impressed with Solidus' ability to unify multiple financial risk data sources, and process them more effectively than ever before to detect anomalies and concerns," said Richard Seewald, Founder and Managing Partner at Evolution Equity Partners, which is leading the investment round. "Any solution that effectively addresses the risk challenges in digital assets will become the future of financial risk monitoring. Solidus is very well positioned, and has the right tech, brand, team and network to achieve this," Seewald added.
About Solidus Labs
Solidus Labs is a team of finance veterans on a mission to enable safe and regulated crypto markets through tailored compliance and risk monitoring solutions. The firm offers the first crypto-native, comprehensive, automated and testable market surveillance and risk monitoring hub tailored for digital assets. Crypto businesses globally rely on Solidus' solutions in order to apply for licensing, attract institutional investors, protect their users and grow faster - and safer.
About Evolution Equity Partners
Evolution Equity Partners is an international venture capital investor partnering with exceptional entrepreneurs to develop market leading cyber-security and enterprise software companies. Based in New York City and Zurich, Switzerland, the firm is managed by investment and technology entrepreneurs who have built companies around the world and leverage their operating, technical and product development expertise to help entrepreneurs win.
Ryan Gorman, RGPR
SOURCE: Solidus Labs