Cryptocurrency solutions firm Talos raised $ 40 million in Series A funding led by Andreessen Horowitz. Which also brought together PayPal Ventures, Fidelity Investments and other investors. As such, Talos now has some of the largest industry sponsors supporting its mission.
What is Talos?
The Talos platform is designed to help institutions manage the entire trading lifecycle.
Founded in 2018, the New York City firm provides technology to financial institutions to support digital asset trading.
Talos services include access to liquidity, direct market access, pricing, automatic execution, reporting, clearing and settlement.
Thus, the company’s client base spans the entire digital asset ecosystem. From buying organizations to financial service providers, and includes banks, broker-dealers, major brokers, OTC offices, lenders and exchanges. Market participants can use the platform to interact with other vendors through a single customizable API and graphical interface.
Anton Katz, co-founder and CEO of Talos, said his firm has “made significant progress over the past two years” in attracting new institutional clients. Thanks to this, the company believes, they will be able to realize their global goal. Which is to provide the basis for institutional trading of digital assets around the world.
The fintech startup announced funding on Thursday and said it will use the capital to build “the institutional-grade infrastructure customers need”.
Justin Schmidt, former head of digital asset markets at Goldman Sachs, joined Talos as head of strategy in April.
PayPal Ventures Managing Partner Peter Sanborn noted that Talos software “provides support for digital assets and enables organizations to securely interact with crypto”.
Andreessen Horowitz investment model
Traditionally, venture capitalists, when working in new directions, faced with the restriction of the US Securities and Exchange Commission (SEC) on investing venture capital. Only 20% of the capital can be used for experiments. And the rest directed to typical venture capital deals.
So, at some point, for Andreessen Horowitz, this limitation became too tight. A company that believes in cryptocurrencies particularly frustrated by the inability to invest more of its main fund in crypto startups. Thus, the company abandoned the status of a venture capitalist. Then it created a separate fund for $ 300 million, focused on the cryptocurrency market and blockchain startups. Moreover, Andreessen Horowitz said they will make larger and more risky investments in cryptocurrency. As well as buy unlimited shares in public companies or from other investors. Noting that the company can invest about $ 1 billion in cryptocurrencies.
Other large companies with more assets are likely to use this model as well. So, it should come as no surprise that the National Venture Capital Association (NVCA) is trying to persuade the SEC to change its definition of what a venture capital firm is. The NVCA recognizes that it will lose more and more of its members if venture capital firms are not given more flexibility.