Paxos has successfully raised $535.3 million over five funding rounds, achieving a valuation of $2.4 billion. The latest round, Series D, took place in April 2021.
Keep reading to explore the intricacies of Paxos' fundraising journey and the investors backing this transformative blockchain infrastructure company.
What Is Paxos?
Paxos, founded by Charles Cascarilla, is a regulated blockchain infrastructure company headquartered in New York City, with additional offices in Singapore and London. The company aims to build transparent and transformative financial solutions.
With a workforce of 201-500 employees, Paxos powers financial leaders like PayPal, Novi, Mercado Libre, and Interactive Brokers to create a more open and trusted economy. Their offerings include stablecoin payments, crypto brokerage, and gold-backed tokens.
Since its inception, Paxos has been supervised by the New York Department of Financial Services and the Monetary Authority of Singapore, ensuring its digital assets are fully backed and regulated.
How Much Funding Has Paxos Raised?
- Seed
- Amount Raised: $3,250,000
- Date: November 2013
- Lead Investors: Canaan Partners, RRE Ventures
- Motivation Behind the Round: To professionalize bitcoin trading, seek regulatory approval in the US, and ensure full regulatory compliance.
- Series A
- Amount Raised: $25,000,000
- Date: May 2015
- Motivation Behind the Round: To optimize the product, market fit, and scale the initial business model.
- Series B
- Amount Raised: $65,000,000
- Date: May 2018
- Lead Investors: Liberty City Ventures, RRE Ventures, Jay Jordan
- Motivation Behind the Round: To scale operations and further the delivery of modern settlement solutions to the global capital markets.
- Series C
- Amount Raised: $142,000,000
- Date: December 2020
- Lead Investors: Declaration Partners
- Motivation Behind the Round: To accelerate growth, scale operations, and expand the team to meet the demands of an expanding customer base.
- Series D
- Amount Raised: $300,000,000
- Date: April 2021
- Lead Investors: Oak HC/FT
- Valuation at Round: $2.4 billion
- Motivation Behind the Round: To accelerate the growth of Paxos' financial market infrastructure platform, hire new team members, and invest in innovation.
Total Amount Raised: $535.3M
Current Valuation: $2.4B
Key Investors
- Oak HC/FT
- Details: Oak HC/FT is a venture growth-equity fund investing in Healthcare Information & Services and Financial Services Technology. Founded in 2014, it manages $3.3 billion in assets.
- Investment Focus Areas: Healthcare Information & Services, Financial Services Technology
- Notable Investments: Not specified
- Declaration Partners
- Details: Declaration Partners is an investment firm backed by the family office of David M. Rubenstein. They have offices in New York City and Washington, DC.
- Investment Focus Areas: Private equity, real estate, growth equity capital, early-stage private funds, venture studios
- Notable Investments: Not specified
- PayPal Ventures
- Details: PayPal Ventures is the venture capital arm of PayPal. It focuses on investments in fintech and related sectors.
- Investment Focus Areas: Fintech, related sectors
- Notable Investments: Not specified
- Liberty City Ventures
- Details: Liberty City Ventures is a venture capital firm that invests in early-stage companies in the blockchain and digital currency sectors. Charles Cascarilla, a founder of Paxos, is a partner at Liberty City Ventures.
- Investment Focus Areas: Blockchain, digital currency
- Notable Investments: Not specified
- RRE Ventures
- Details: RRE Ventures is a venture capital firm that invests in technology companies across various stages and sectors, including financial technology. They have been involved in multiple funding rounds for Paxos.
- Investment Focus Areas: Technology, financial technology
- Notable Investments: Not specified
What's Next for Paxos?
Paxos stands at the cusp of significant growth opportunities, driven by the increasing demand for regulated blockchain infrastructure. The company aims to accelerate the expansion of its financial market infrastructure platform, establish the Paxos National Trust Bank, and secure a Major Payment Institution license in Singapore. These initiatives, coupled with the ongoing development of enterprise-grade infrastructure, position Paxos to capitalize on the burgeoning digital asset market.
Future fundraising efforts are likely as Paxos continues to scale operations and innovate. The company's recent $300 million Series D round underscores investor confidence, suggesting that additional funding rounds could support further expansion and technological advancements. However, Paxos will need to navigate regulatory complexities and maintain robust security measures to sustain its growth trajectory.
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