Figment raised $110M at a $1.4B Valuation led by Thoma Bravo

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Figment, the staking provider is now valued at $1.4 billion after the fresh raise of $100 million in a Series C funding round. This round of funding was an expected move at a time when there is a boom in prices for staking-based coins. The crypto-staking firms are raking in the cash. The round was led by private equity firm Thoma Bravo with other participants like Morgan Stanley’s Counterpoint Global, Avon Ventures & crypto exchanges Binance, ParaFi Capital, Binance.US, and Bitstamp. Earlier, Figment raised $50 million in a Series B funding round co-led by Senator Investment Group and Liberty City Ventures.                               

The company will use the funding to add support for staking across more proof-of-stake blockchains. They are even planning to hire more talented developers. The big surge in prices in recent times combined with the proliferation of proof-of-stake blockchains has resulted in a gold rush for crypto-staking companies. Figment alone is seeing revenue of around $10 million a month. Not just this, the projected revenue is around $100 million in the coming years.

Figment runs validators on more than 50 blockchains and takes care of $7.5 billion in assets. Furthermore, it takes a cut from all staking revenue that gets generated. As per Figment, the majority of its staking revenue comes from our institutional clients. While some earnings come from the retail delegators since a lot of the company’s validators are public. Clayton Menzel, the head of protocols and opportunities of Figment, stated that they even stake tokens that are on our balance sheet. However, it is not even close to the majority of revenue earned.

He even mentioned that the major cost of the firm goes into staffing, equipment, insurance premiums, and their overall investment is minimal. Thus, the business model is highly profitable in revenue compared to the base cost. The company has recently launched an investment arm, Figment Capital, to focus on investing in the crypto industry.