Total amount raised
$2.4 Billions
Latest funding date
4/1/2021
Location
Paxos has successfully raised significant capital through multiple funding rounds, attracting a diverse group of investors. The company is dedicated to building regulated blockchain infrastructure for enterprises, ensuring compliance and transparency.
Keep reading to explore the intricacies of Paxos' fundraising journey and the investors backing this innovative platform.
What Is Paxos?
Paxos, founded in 2012 by Charles Cascarilla and Richmond Teo, is headquartered in New York, New York. The company specializes in building regulated blockchain infrastructure for enterprises, bridging the gap between traditional finance and the digital future.
With a workforce of 251-500 employees, Paxos offers a range of products including stablecoins, digital gold, and a crypto asset trading platform. Their mission is to enable seamless movement between physical and digital assets.
Regulated by the New York Department of Financial Services and the Monetary Authority of Singapore, Paxos is committed to compliance and transparency in the financial sector.
How Much Funding Has Paxos Raised?
- Seed Round
- Amount Raised: $3.3M
- Date: November 2013
- Lead Investors: Canaan Partners, RRE Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the company's operations and develop its initial blockchain infrastructure.
- Series A
- Amount Raised: $28.2M
- Date: May 2015
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and enhance the platform's capabilities.
- Series B
- Amount Raised: $65M
- Date: May 2018
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and support new product development.
- Series C
- Amount Raised: $142M
- Date: December 2020
- Lead Investors: Declaration Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the company's growing business and explore acquisition opportunities.
- Series D
- Amount Raised: $300M
- Date: April 2021
- Lead Investors: Oak HC/FT
- Valuation at Round: $2.4 billion
- Motivation Behind the Round: To invest in enterprise-grade infrastructure, hire new team members, and increase platform capacity.
- Venture Round
- Amount Raised: $5M
- Date: January 2022
- Lead Investors: Alameda Research
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing growth and operational expansion.
- Corporate Round
- Amount Raised: Not publicly disclosed
- Date: January 2022
- Lead Investors: MercadoLibre
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To strengthen strategic partnerships and enhance market presence.
Total Amount Raised: $543.5M
Current Valuation: $2.4 billion
Key Investors
- Oak HC/FT
- Details: Oak HC/FT is a venture capital firm that invests in early to growth-stage companies in the healthcare and financial technology sectors. They led the Series D funding round for Paxos.
- Investment Focus Areas: Healthcare, financial technology, technology.
- Notable Investments: One Medical, Poynt, VillageMD.
- Declaration Partners
- Details: Declaration Partners is an investment firm that focuses on growth-stage companies across various sectors. They participated in multiple funding rounds for Paxos.
- Investment Focus Areas: Technology, financial services, consumer products.
- Notable Investments: Not publicly disclosed.
- PayPal Ventures
- Details: PayPal Ventures is the investment arm of PayPal Holdings Inc., focusing on companies that align with PayPal's strategic interests. They have been a recurring investor in Paxos.
- Investment Focus Areas: Fintech, digital payments, e-commerce.
- Notable Investments: Uber, MercadoLibre, Tala.
- Mithril Capital
- Details: Mithril Capital is a growth-stage venture firm co-founded by Peter Thiel. They focus on technology companies with transformative potential.
- Investment Focus Areas: Technology, innovation, healthcare.
- Notable Investments: Palantir, Helion Energy, Adimab.
- Liberty City Ventures
- Details: Liberty City Ventures is a venture capital firm that focuses on early-stage investments in technology and blockchain companies. They have been a consistent investor in Paxos.
- Investment Focus Areas: Blockchain, digital currency, technology.
- Notable Investments: BitGo, Digital Currency Group, Tagomi.
What's Next for Paxos?
As Paxos looks to the future, the opportunities are vast and promising. The company is poised to expand its enterprise-grade infrastructure, onboard new clients of PayPal's caliber, and enhance its regulatory compliance capabilities. With the crypto market valued at $2 trillion and the potential for tokenizing real-world assets reaching $70 trillion, Paxos is well-positioned to capitalize on these trends.
Future fundraising efforts are likely as Paxos continues to scale its operations and explore new markets. The recent $300 million Series D round underscores investor confidence, suggesting that additional rounds could support further growth and acquisitions. However, the path forward is not without challenges. Navigating regulatory landscapes, maintaining security, and competing with other blockchain firms will require strategic planning and robust execution.
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