Total amount raised
$77.8 Million
Latest funding date
8/1/2024
Location
Arch has successfully raised funding over three rounds, with the latest being a Debt Financing round. The company is backed by notable investors including Morgan Creek Digital and BitGo.
Keep reading to explore the intricacies of Arch's fundraising journey and the investors backing this innovative platform.
What Is Arch?
Arch is a financial technology company based in New York, New York, specializing in offering credit to alternative asset owners. The company operates in the Credit, Financial Services, FinTech, and Lending industries.
Founded by ChainFi, Inc., Arch provides crypto-backed loans with a focus on trust and security. The company has a small team of 1-10 employees and emphasizes white-glove customer support and transparent loan terms.
How Much Funding Has Arch Raised?
- Seed Round
- Amount Raised: USD 2,750,000
- Date: January 2023
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the initial development and launch of Arch's crypto-backed loan platform.
- Seed Round
- Amount Raised: USD 5,000,000
- Date: August 2024
- Lead Investors: Alumni Ventures, Castle Island Ventures, Morgan Creek Digital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand Arch's financial technology services and increase their credit offerings to alternative asset owners.
- Debt Financing
- Amount Raised: USD 70,000,000
- Date: August 2024
- Lead Investors: Galaxy Digital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To fund crypto-backed loans and meet the increasing demand for borrowing against cryptocurrency.
Total Amount Raised: USD 77,750,000. Current Valuation: Not publicly disclosed.
Key Investors
- Alumni Ventures
- Details: Alumni Ventures is a venture capital firm that invests in early-stage companies. They leverage a network of alumni from top universities to identify and support promising startups.
- Investment Focus Areas: Early-stage companies across various sectors.
- Notable Investments: Various early-stage companies across different sectors.
- Castle Island Ventures
- Details: Castle Island Ventures is a venture capital firm focused on public blockchain startups. They aim to support the development of blockchain technology and its applications.
- Investment Focus Areas: Public blockchain startups.
- Notable Investments: Various blockchain and cryptocurrency startups.
- Morgan Creek Digital
- Details: Morgan Creek Digital is a venture capital firm that invests in blockchain technology and digital assets. They are known for their strategic investments in the digital asset ecosystem.
- Investment Focus Areas: Blockchain technology, digital assets, cryptocurrency.
- Notable Investments: Various blockchain and cryptocurrency startups.
- Galaxy Digital
- Details: Galaxy Digital is a diversified financial services firm dedicated to the digital asset, cryptocurrency, and blockchain technology sector. They provide a range of services including trading, asset management, and advisory.
- Investment Focus Areas: Digital assets, cryptocurrency, blockchain technology.
- Notable Investments: Various blockchain and cryptocurrency startups.
- BitGo Ventures
- Details: BitGo Ventures focuses on digital asset financial services, including custody, trading, and lending. They are known for their secure and compliant solutions for institutional investors.
- Investment Focus Areas: Digital asset financial services, blockchain technology, digital asset custody.
- Notable Investments: Companies focused on digital asset security and custody.
What's Next for Arch?
Arch is poised to capitalize on the growing demand for crypto-backed loans, with opportunities to expand its loan facility and introduce new investment products. The recent $75 million funding round underscores the potential for significant growth, driven by the increasing interest in borrowing against cryptocurrencies like Bitcoin, Ethereum, and Solana.
Future fundraising opportunities are likely, as Arch may attract additional capital providers and consider securitizing its loan facility. This financial backing will enable the company to scale its operations and enhance its product offerings, positioning itself as a leader in the digital asset lending space.
However, Arch will need to navigate regulatory challenges, cybersecurity threats, and competition from other crypto lenders. Ensuring the security and regulation of their business model will be crucial as they continue to innovate and grow in a rapidly evolving market.
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