Digital Asset Risk Management Startup Cloudwall Capital Lands $6.3M in Seed Funding

Cloudwall Capital, a new digital asset risk management startup, has raised $6.3m in seed funding led by LocalGlobe and Illuminate Financial to help it build the tool to bridge the traditional finance world with digital assets and decentralized finance.

They were joined by a syndicate of investors including IA Capital Partners, Eberg Capital and NEMO Ventures, along with founder and operator angel investors from across decentralized and traditional finance.

Founded in 2021, Cloudwall Capital is building a new product, Serenity, which will provide institutional investors with the risk management insights to effectively build portfolios and manage risks inherent in digital assets so they can invest confidently. 

Cloudwall will use its seed funding to grow its team to 15 people by the end of the year and further develop the platform with an aim to launch an early access program this summer.

Ilya Kulyatin, co-founder and Head of Research at Cloudwall Capital, said: "In the course of our market research, we identified the lack of institutional-grade risk and analytics products for investors in cryptocurrencies as a serious issue - with traditional finance models insufficient at best and misleading most of the time for this growing market. There is a need for a new risk modelling and valuation paradigm. The platform we are building, Serenity, will be the first and most advanced solution for this new world of digital assets."

Alexander Ross, general partner at Illuminate Financial, said: "Over the course of 2021 a large number of TradFi institutions, some of which are LPs in our funds, started to invest in crypto assets. As a result, we are seeing significant demand for an institutional-grade risk management solution. Recent market conditions further exacerbate the need for risk management solutions and we believe strongly that Kyle, Ilya and Jia (leaders for building Serenity) are the perfect team to build this."

Source: Finextra