Germany-based crypto custody and staking service provider Finoa has successfully raised $15 million in a strategic funding round co-led by Maven 11 Capital and Balderton Capital. Announced on January 9 by the Finoa team, the round also included participation from Blue Bay Ventures, Signature Ventures, Coparion, and Venture Stars.
In an interview, Finoa’s co-founder and CEO Christopher May revealed that the capital raise began in June 2023 and concluded in December, exceeding the initial target of $5-6 million due to the company’s recent profitability attracting greater investor interest.
This strategic round comes almost three years after Finoa’s $22 million Series A in April 2021. May explained that the company opted for a smaller strategic round instead of a large Series B due to challenging market conditions last year, focusing on growth.
May mentioned that Finoa, founded in 2018, was profitable until 2021 but faced losses in the following two years due to tough market conditions and bankruptcies in the crypto industry. However, he added that the company closed the fourth quarter of 2023 profitably, considering the market recovery and growth in staking services.
Finoa’s staking department, Finoa Consensus Services, has amassed over 500 million euros in assets since its launch in May 2022, now accounting for nearly 60% of Finoa’s total revenue. The firm supports over ten blockchain networks for staking services and is the third-largest validator for the modular blockchain network Celestia. Additionally, Finoa recently introduced FinoaConnect, a custody wallet infrastructure providing access to decentralized finance (DeFi) applications, currently in trial phase and expected to generate additional revenue upon full launch.