TBW - EXCLUSIVE. Flowdesk raises $52 million, BlackRock is part of the deal
Launched in 2020, the French crypto market maker has just raised $52 million as part of an extension to its 2024 Series B (already $50 million). BlackRock, which wants to accelerate in crypto, is contributing $10m in the form of a loan.
The start of the year is one thing after another for Flowdesk. After raising $50 million in early 2024, the French market maker has just done it again in February with a further $52 million, taking its Series B total to $102 million.
This deal was led by Germany's HV Capital, with support from historic investors such as Eurazeo and Cathay Ledger, as well as global finance giant... BlackRock.
A $10 million loan
In lieu of a direct investment, Larry Fink's company opted to provide a $10 million loan to the French start-up. According to our information, the asset management giant ($10 trillion in assets under management) has also secured a priority right over future fundraising - particularly in the event of investors exiting or during a Series C.
"This deal validates our strategy and the arrival of BlackRock will enable us to change dimension," explains Guilhem Chaumont, co-founder and CEO of Flowdesk.
Created in 2020, Flowdesk has developed three complementary activities - market making, trading and derivatives - whose common objective is to make trading on crypto markets more fluid. "We started with market making and gradually added activities that allow us to be very well positioned in financial services for market players", Guilhem Chaumont is pleased to say.
Boosted by market momentum, Flowdesk saw its revenues jump by 700% in 2024. According to our information, the company, which employs 150 people, would be profitable.
The crucial battle of liquidity
With this fundraising, the company, which has offices in Paris, Singapore, New York and London, intends to continue its growth in an increasingly competitive ecosystem, particularly against players such as Wintermute and GSR.
"In this industry, the key is liquidity. We need to strengthen our ability to buy assets to operate at our best and to do that, we need capital, hence this fundraising with a player like BlackRock", explains Guilhem Chaumont, who points out that Flowdesk will need to raise further money to increase its financial capacity.
Currently, the French company, which plans to recruit 100 people over the next 18 months, is said to have a balance sheet of several hundred million dollars. By way of comparison, market leaders Wintermute and GSR reportedly have several billion. "The more money you have to buy and sell cryptos, the more you're able to meet demand from your customers like Exchanges and funds," points out one industry insider.
This announcement comes just days after revelations about Citadel Securities' ambitions in crypto market making. According to Bloomberg, the largest US trader wants to become a preferred partner for companies that need cryptos. This is the case for platforms such as Coinbase, Binance, Cryptocom as well as more traditional players.
"The arrival of players like Citadel will make the pie bigger. Other Wall Street firms will take an interest in the subject," explains the manager of a crypto fund. And Flowdesk has every intention of grabbing a big slice.
