We are pleased to announce our investment in Finoa, a fully regulated digital asset platform based in Germany.
Founded by Christopher May and Henrik Gebbing in 2018, Finoa has built a technology platform that we believe will be a foundational piece of the digital financial services capital markets infrastructure of the future in Europe and beyond.
Although retail investors were the primary drivers of the first wave of digital asset adoption, institutional investors have entered the market in greater force over the past 2-3 years, notwithstanding the broader market turbulence. However, for institutional capital to flow into the ecosystem at scale, the market will require custodians, regulated broker dealers and firms with structuring and securitisation capabilities, increasing the demand for secure, institutional grade custody solutions and adjacent services over the coming decades.
Furthermore, given the irreversible nature of transactions on the blockchain and high incidences of security breaches (c.47 digital asset exchanges have been hacked to date with c.$3B in funds stolen) in what is still a nascent technology, custodians and custody solutions will play an important role in the development of digital asset market infrastructure and the ecosystem.
Finoa is a digital asset management solution which provides institutional and sophisticated investors (e.g., Investment funds, Exchanges and Corporates) with curated access to over 185 crypto assets and the wider Web3 ecosystem. A BaFIN regulated, qualified custodian is an institutional grade offering (with fully segregated customer accounts), and is a unique platform that will increasingly offer new services to its client base (i.e. brokerage, wallets, governance etc). Finoa is a trusted partner leveraged by over 100 institutions. MGV views this as a critically important strategic asset and are thrilled to be backing such a fantastic team.
MiddleGame participated in the Series A round led by Balderton. With this capital raise, Finoa will continue to expand its product line and will also pursue new jurisdictions, outside of Europe. We look forward to helping the company grow into a large business and an important piece of digital asset infrastructure. Finoa sits alongside our other digital infrastructure investments, Keyrock, Coinfirm, and Blockpit.
You can read more about Finoa and the funding round here.