Sygnum Secures Over $40 Million in Funding, Nears Unicorn Status in Strategic Growth Round

Switzerland and Singapore-based crypto banking group Sygnum has successfully raised over $40 million in an interim close of its Strategic Growth Round, surpassing its initial target of approximately $35 million. This funding round, led by global asset management group Azimut Holding, has propelled Sygnum’s post-money valuation to an impressive $900 million.

The oversubscribed Strategic Growth Round is a testament to Sygnum’s strong financial and operational performance, particularly noteworthy during the challenging period known as the “crypto winter.” The company concluded 2023 with an annualized revenue run rate exceeding $100 million and achieved positive cash flow in Q4.

Azimut Holding, the lead investor for this round, expressed enthusiasm about the timing of the fundraising, highlighting the growing demand for well-regulated institutional services in the crypto sector expected in 2024. The funding round saw participation from both new and existing strategic and financial investors, including Sygnum employees who joined as personal investors under the same terms as external investors. Notably, the majority ownership of the company remains in the hands of Sygnumers, co-founders, board members, and the management team.

The funds raised will fuel Sygnum’s expansion into new markets, with plans to enter one European market and another in the Asia-Pacific region during 2024. Additionally, the capital will accelerate the development of Sygnum’s fully regulated products, such as its bank-to-bank (B2B) platform. This platform currently powers the crypto offerings of over 15 banks and financial institutions globally.

Since its successful Series B fundraise, Sygnum’s assets under administration have soared to over $4 billion, with a client base spanning more than 60 countries and over 1,700 clients. The company’s commitment to geographic expansion is evident in recent partnerships, including the one with PostFinance in Switzerland and the extension of an existing partnership with Bordier & Cie in Singapore.

The success of this funding round signals a positive trajectory for Sygnum and the broader digital asset industry, emerging from the challenges of the crypto winter. Investors and market participants are increasingly seeking collaborations with trusted and well-managed financial institutions, and Sygnum’s strategic funding positions it to meet these growing demands.

As Sygnum approaches unicorn status with its $900 million valuation, the company remains a key player in the evolving landscape of regulated digital asset banking. The fresh capital infusion will not only support its geographic expansion and product development but also contribute to the continuous enhancement of its suite of fully regulated solutions, catering to the increasing investor exposure to the asset class.