Halborn raises $90 million despite cryptocurrency downturn
- Halborn company raised $90 million even as cryptocurrency keeps losing value.
- The security firm received Series A funding from several investors.
- Halborn is keen on empowering organizations like NIKE Inc. on how to use and safeguard crypto.
Blockchain security company Halborn has successfully raised $90 million during the crypto meltdown. The transaction stands out as an anomaly in the current market. Lately, the market has seen a decrease in the amount of venture capital invested in crypto firms and a dramatic fall in the value of cryptos.
The Miami-based company Halborn received Series A funding from a group of investors. The notable investors included Castle Island Ventures, Digital Currency Group, and Brevan Howard. Summit Partners served as the financing round’s lead investor. The startup firm, which has been operating for the past three years, chose not to state its valuation. As the values of cryptos continue to fall, most firms related to cryptos have considered ways to raise capital at lower valuations.
Moreover, some have proceeded to stop the employment of some of their staff. But, according to Rob Behnke, Chief Executive Officer of Halborn, they can storm the winter. Rob said that the company’s startup status provides some protection against the effects of the crypto winter. He believes their emphasis on cybersecurity helps them outmaneuver the meltdown.
Blockchain security firm Halborn doesn’t rely on the cryptocurrency market state
During an interview, Rob stated that the price of cryptos had no bearing on the company’s operations.
The fact that the sector as a whole is expanding is the thing that counts the most.Rob Behnke
According to Behnke, demand for the services offered by Halborn has increased over the past year. The demand stems from high-profile attacks that have shaken the business. There is a continuing trend of people attempting to steal cryptos.
The more than one hundred-person business plans to prevent some of these exploits. For instance, they aim to stop attacks such as the $620 million hack in March using the non-fungible token game Axie Infinity. Halborn strictly analyzes the code that underpins blockchain platforms. In case there are flaws, they devise security measures.
Halborn discovered a vulnerability in the widely used MetaMask crypto wallet a month after its release to the public. In a session, Steve Walbroehl, co-founder of Halborn and Chief Information Security Officer of the entity, stated that they have held onto that for over a year until they had it addressed. The firm collaborates with Coinbase Global Inc., the Solana blockchain, and Ava Labs, the developer of the Avalanche blockchain.
Even organizations not in the crypto business, like Amazon.com, BNY Mellon, and Nike Inc., can learn how to use and safeguard crypto thanks to this. Besides, Halborn offers consulting services. They target venture capital firms, family offices, and banks on the level of risk on crypto initiatives. According to what Behnke indicated, the client is concerned about the possibility of an attack and thus losing all their money.
Halborn invests in blockchain for the first time
Matthew Hamilton, managing director at Summit Partners, had this to say.
We believe that demand for the firm’s security services would increase over time. This is because the crypto industry is still at a relatively early stage of development. Therefore, most crypto enthusiasts will reach out for protection. This was a factor that we considered when deciding whether or not to invest in Halborn.Matthew Hamilton
Halborn is Summit’s first investment in the blockchain. Yet, Hamilton even sees some positives in the industry’s current crypto winter. “It is a necessary separation of the good concepts from the garbage,” he said.
Elsewhere, Multicoin Capital is not slowing down with its Venture Fund III, which was $430 million in size. The fund’s investment supports data-gathering, decentralized autonomous organizations (DAOs), and public banking. Also, the investment supports Web3 technology and consumer social possibilities. Multicoin funding is not restricted to the mentioned areas alone. Thus, they will use it creatively to ensure the returns are positive.