Crypto Capital Monthly - July 2020

We analyse what investments were made and by whom in July 2020

👋Welcome to the first Crypto Capital Monthly post where we look back at the investments made in July 2020 and provide you with in-depth analysis.

We are excited to have you here and look forward to any feedback or additions you would like to make to our data.

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July was another busy fundraising month for crypto companies, with 28 companies raising capital and the 20 that disclosed financials raised over US$129M. This was 40%+ more than the previous month (US$92M). Additionally, token raises saw nearly US$100M in investment, with AVA Labs and Polkadot hauling in more than US$40M each.

A couple of trends for the month:

  • M&A markets seem to be heating up and July saw two acquisitions - Binance acquired Swipe, a multi-asset digital wallet and Visa debit card platform, and Mainframe, a blockchain communication platform, acquired Sablier, a protocol for real-time finance on the Ethereum blockchain

  • Smart contract platforms are making a resurgence as ETH scaling concerns have come back to the forefront as gas costs sky-rocket

  • DeFi continues to heat up and investors seem to be ready to pour money into every pre-launch decentralized finance product. DeFi projects announcing fundraises this month include Derivadex, Aave, Teller, and Injective

  • July is the first month of 2020 where we recorded security token sales. One was conducted by Republic, the equity crowdfunding platform, and one by NBA player Spencer Dinwiddie.

Thanks for reading, we hope that you find our analysis valuable. If we have missed a deal that you know of, let us know.

Nawaz & Regan

Equity Capital Raising

US$129.3M was raised in traditional equity offerings in July 2020

30/06/2020 | B2C2 | US$30,000,000 | Trading & Investment | UK

SBI Financial Services, a subsidiary of Japanese financial giant SBI Holdings, has bought a US$30M stake B2C2, a crypto exchange.

01/07/2020 | Curv | US$23,000,000 | Custody | USA

Curv, a startup that provides crypto custody services to institutions, recently closed a US$23M Series A funding round. Investors include Digital Currency Group, Coinbase Ventures and CommerzVentures.

01/07/2020 | Paradigm | Undisclosed | OTC | USA

Paradigm has raised strategic financing round led by Dragonfly Capital with participation from Digital Currency Group, OKCoin Ventures, Bybit Fintech, Alameda Research, New York Digital Investment Group (NYDIG), CoinShares, and Yleana Venture Partners.

01/07/2020 | Vendia | US$5,100,000 | Blockchain | USA

Vendia has raised a US$5.1M funding round led by Neotribe Ventures with support from Correlation Ventures, WestWave Capital, Hummer Winblad Venture Partners, Firebolt Ventures, Floodgate and Future\Perfect Ventures.

03/07/2020 | DerivaDEX | US$2,700,000 | Trading & Investment | USA

DerivaDEX, a decentralised exchange for derivative contracts built on top of Ethereum, has raised US$2.7M through two rounds of financing. Investors include Polychain Capital, Dragonfly Capital Partners, Electric Capital, Coinbase Ventures, CMS Holdings, Three Arrows Capital, Calvin Liu (strategy lead at Compound), and Phil Daian (cryptocurrency researcher).

07/07/2020|Chainalysis|US$13,000,000|Trading & Investment|USA

Chainalysis recently raised an additional US$13M to expand its Series B round to US$49M, with an investment from Ribbit Capital and Sound Ventures.

07/07/2020 | Wintermute Trading | US$2,800,000 | Trading & Investment | USA

Wintermute Trading, and algorithmic liquidity provider for digital assets, have closed a US$2.8M Series A round led by Lightspeed Venture Partners.

09/07/2020 | Radix DLT | US$4,100,000 | DeFi | UK

Radix DLT, a decentralised finance protocol company, raised US$4.1m in funding. Investors include LocalGlobe, TransferWise’s Taavet Hinrikus and others.

10/07/2020 | HOPR | US$1,000,000 | Blockchain | Switzerland

HOPR, a company building a data privacy-protecting protocol, has raised US$1M in a strategic investment round. The round was led by Binance Labs with participation from Focus Labs, Spark Digital Capital, Caballeros Capital, AU21 Capital, and Synaitken.

14/07/2020 | Valid Network | US$8,000,000 | Enterprise Solutions | Israel

Valid Network, an enterprise security solution, has raised US$8M seed round. The round was led by Ten Eleven Ventures, and Jerusalem Venture Partners also participated.

14/07/2020 | Digital Asset | Undisclosed | Enterprise Solutions | USA

Digital Asset, Creators of DAML, add VMware as an investor in Series C Round.

14/07/2020 | METACO | US$17,000,000 | Trading & Investment | Switzerland

METACO, a provider of security-critical digital asset infrastructure for financial institutions, has raised US$17M in a Series A round, led by Giesecke+Devrient, the German-based security technology company and one of the main central bank infrastructure partners globally. Other investors include Standard Chartered Bank, Swisscom, SICPA, Avaloq, and Swiss Post.

15/07/2020 | Evertas | US$2,800,000 | Financial Services | USA

Evertas, an insurance provider focused on the cryptocurrency space, has raised US$2.8M in a seed round led by Morgan Creek. Other participants include Plug and Play, Kailash Ventures, RenGen, Vy Capital and Wavemaker Genesis.

16/07/2020 | Sorare | US$4,000,000 | Gaming | France

Sorare, and Ethereum-based fantasy football gaming startup, has raised US$4M in a seed funding round. The round was led by, with participation from German professional footballer Andre Schurrle, Ledger co-founder Thomas France, and venture firms Partech, Fabric Venture, and Semantic Ventures.

16/07/2020 | Teller | US$1,000,000 | DeFi | USA

Teller, a blockchain project for decentralized lending has announced a US$1M seed round led by Framework Ventures, with participation from Parafi Capital and Maven11 Capital.

16/07/2020 | Xangle | US$3,300,000 | Data | South Korea

Xangle, a crypto asset disclosure platform, has completed a Series A2 investment round of US$3.3M (4 billion won) by Hanwha Investment & Securities, a licensed securities brokerage subsidiary of South Korea’s Hanwha Group.

16/07/2020 | XMEX | US$5,000,000 | Trading & Investment | China

XMEX, a crypto derivatives platform, has raised $US5M from the Canada Nuchain Foundation.

21/07/2020 | Coinfirm | US$2,380,000 | Compliance | UK

Coinfirm, a blockchain regtech platform, has received US$2.38M (EUR 2M) in investment from Middlegame Ventures.

21/07/2020 | Quant Network | Undisclosed | Blockchain

Quant Network, a company focussed on interoperability of private DLTs and public blockchains, has received investment from Alpha Sigma Capital.

21/07/2020 | VALR | US$3,400,000 | Trading & Investment | South Africa

VALR, a crypto exchange, has raised US$3.4M in a Series A funding round, led by BitMEX holding company, 100x. Bittrex also participated in the round among other investors.

22/07/2020 | SharpShark | Undisclosed | IP | Chile

NEM Ventures has invested in SharpShark, a Symbol-powered timestamping solution that protects creators’ copyrights.

28/07/2020 | Avantgarde Finance | Undisclosed | DeFi | Switzerland

Coinshares Ventures has invested in Avantgarde Finance, a company that aims to democratize and disintermediate investment fund administration.

29/07/2020 | HashQuark | Undisclosed | Blockchain | Hong Kong

HashQuark, a staking and blockchain infrastructure provider, has raised a Series A round led by Qiming Venture Partners. Other investors in the round include Fenbushi Capital, HashKey Capital, Hash Global, imToken Ventures, and SNZ.

29/07/2020 | Injective Protocol | US$2,600,000 | Blockchain | USA

Injective Protocol, a decentralized derivatives exchange protocol incubated by Binance Labs, has raised US$2.6M in a seed funding round. The round was led by Pantera Capital, with participation from Asia-based QCP Soteria, Axia8 Ventures and Boxone Ventures, Bitlink Capital and others.

29/07/2020 | MenaPay | Undisclosed | Financial Services | Turkey

Menapay, a blockchain-based, fully backed cryptocurrency and platform, has received investment from Coinshares Ventures.

31/07/2020 | Audius | US$3,100,000 | Music | USA

Audius, a streaming service that connects music fans directly with artists, has raised US$3.1M in a strategic round co-led by Multicoin Capital and Blockchange Ventures, with participation from Pantera Capital and Coinbase Ventures.

31/07/2020 | Circle | US$25,000,000 | Trading & Investment | USA

Circle has partnered with Digital Currency Group (DCG) subsidiary Genesis Global Trading to develop yield and lending products for USDC. The partnership also includes a US$25M strategic investment from DCG in Circle.

31/07/2020 | KeeperDAO | Undisclosed | DeFi

DeFi project KeeperDAO has raised over US$1M in seed funding from Polychain Capital and Three Arrows Capital.

Token Sales

US$93.2M was raised in token sales in July 2020

01/07/2020 | The Graph | US$5,000,000 | Blockchain | USA

The Graph, a company building an indexing protocol, has closed US$5M in a SAFT from strategic crypto funds including Framework, ParaFi Capital, Coinbase Ventures, Digital Currency Group, Tally Capital, CoinIX, Collider Ventures, Lemniscap, and Sustany, with continued participation from Multicoin Capital and DTC Capital.

08/07/2020 | Aave | US$7,500,000 | DeFi | USA

Aave, a DeFi lending protocol received US$4.5M in investment from ParaFi Capital. Framework Ventures and Three Arrows Capital also make US$3M investment in Aave.

23/07/2020 | AVA Labs | US$42,000,000 | Blockchain | USA

Avalanche raises US$42M in 4.5 Hours for the public sale of its token AVAX.

29/07/2020 | Polkadot | US$43,700,000 | Blockchain | USA

Blockchain interoperability protocol Polkadot has acquired around US$43.7M in funding through a private token sale. Investors that took part in the sale received Polkadot’s native DOT tokens, which were sold at US$125 per token.

Security Token Sales

Over US$9.4M was raised in security token sales in July 2020

16/07/2020 | Republic | US$8,000,000 | Trading & Investment | USA

Republic, the equity crowdfunding platform, raised over US$8M by selling the NOTE security token, which offers investors profit sharing.

22/07/2020 | Spencer Dinwiddie | US$1,350,000 | Gaming | USA

NBA Player Spencer Dinwiddie’s Token Sale Hits 10% of US$13.5M, selling US$1.35M worth.

Mergers and Acquisitions

06/07/2020 | Swipe | Undisclosed | Financial Services | USA

Binance has completed the acquisition of Swipe, a multi-asset digital wallet and Visa debit card platform that allows users to buy, sell, convert and spend cryptocurrencies, for an undisclosed amount.

28/07/2020 | Sablier | Undisclosed | DeFi | USA

Mainframe, a blockchain company that launched in 2018 as a decentralized communication platform, today announced its relaunch as Mainframe Lending Protocol, following its acquisition of Sablier, a protocol for real-time finance on the Ethereum blockchain.

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Editorial Disclosure: A version of this article originally appeared on Brave New Coin, authored by Nawaz Ahmed.

Disclaimer: Crypto Capital Monthly is provided for informational purposes only and is not intended to provide commercial, financial or legal advice. Nothing in this article constitutes an offer of securities or regulated financial products or financial services to any person.