San Francisco based crypto trading service raised $17m in funding from investors including Avon Ventures, Coinbase Ventures, Lightspeed Venture Partners, Flybridge, Accel, Fenbushi, and Accomplice.
The company is currently focused on institutional customers, which the company’s founders Raghu Yarlagadda and Prabhakar Reddy loosely described to TechCrunch as those with $10 million AUM (assets under management) and up. This likely makes KYC (know your customers) rules easier for the startup to follow. FalconX makes money from trading fees, albeit in two ways. It offers either crypto prices with its fees included or on a fixed-fee model. Notably the firm says that crypto-native customers prefer the baked-in approach, while more traditional customers prefer the visible-fee method.