Israel’s Solidus nets $20 mn from VCs, former SEC and CFTC execs

 Israel’s Solidus nets $20 mn from VCs, former SEC and CFTC execs

A congratulatory message for Solidus Labs on Nasdaq Tower in New York’s Times Square

Israeli financial risk monitoring startup Solidus Labs has raised $20 million in Series A funding from a bunch of investors led by Evolution Equity Partners.

Hanaco Ventures, 645 Ventures, crypto exchange FTX and Avon Ventures also participated in the round, Solidus said in a statement.

Hanaco Ventures had led Solidus Labs’ seed funding round in early 2019. Avon Ventures is a venture capital fund affiliated with FMR LLC, the parent company of Fidelity Investments.

Solidus said several angel investors also took part in this round. These include former Commodity Futures Trading Commission (CFTC) chairman Christopher Giancarlo, former Securities and Exchange Commission commissioner Troy Paredes, former CFTC chief innovation officer Daniel Gorfine and StarCompliance founder Marc Epstein.

Other individual investors were International Securities Exchange founder David Krell, AngelList founder Naval Ravikant, SecurityScorecard founders Sam Kassoumeh and Aleksandr Yampolskiy, serial entrepreneur Jeff Fagnan and Takoma Group founder Alex Acree.

Solidus Labs, which was founded in Israel and is now based in New York, offers financial risk monitoring in a crypto-based system. The company was started in 2017 by CEO Asaf Meir, chief operating officer Chen Arad and chief technology officer Praveen Kumar.

The last time Solidus raised money was in 2019 when investors led by Hanaco Ventures led a $3 million seed round.

Meir said the fresh capital will enable the startup to continue to develop its technology and enhance its reach.

“Crypto and digital assets aren’t just transforming financial services, they’re also driving a major transformation in how capital markets, and finance as a whole, will be regulated,” said Meir.

Richard Sewald, founder and managing partner at Evolution Equity Partners, said the investment firm backed Solidus because it was “deeply impressed” with its ability to unify multiple financial risk data sources and process them more effectively than ever before to detect anomalies and concerns.

Aman Malik

The Capital Quest