Feedback : Ledger raises funds and confirms its unavoidable positioning in the service of crypto market security

For several years now, investors have been turning to physical wallets to protect crypto-currencies from risky platforms. Ledger has positioned itself in this niche market, which has since allowed it to gain ground, to the point of becoming a must-have, in a market shaken by scam cases. The French unicorn is now closing a series C with a new round of financing attracting new investors. The bankruptcies and hacks that have occurred since 2022 and the newfound strength of Bitcoin are giving it wings.

FACTS 

• In March 2023, Ledger announced a new €100 million funding round, a boon given industry conditions. New investors include True Global Ventures, Cité Gestion, Digital Finance Group and VaynerFund. Existing investors 10T, Cité Gestion Private Bank, Cap Horn, Morgan Creek, Cathay Innovation, Korea Capital and Molten Ventures also participated.

• The company announced that it has surpassed 6 million Ledger Nano keys sold. These physical, USB-like wallets contain a private key, attached to the owner's digital wallet like a safe (unlike their customer database, which was hacked twice in 2020).

• In November 2022, following the demise of FTX, Ledger released some key numbers that show its resilience in the face of the crypto winter crisis: 

  • currently, 20% of global crypto-currencies are stored in Ledger wallets and 30% of NFTs;

  • Ledger Live has 1.5 million monthly users;

  • stable valuation at €1.3 billion;

  • Same revenue as 2021;

  • Ledger plans to hire approximately 40 employees in 2023.

• Ledger also aims to improve the user experience and simplify access to Web3, whether it be decentralized finance or NFT.

• The company also needs to continue to conquer the B2B market by offering SaaS platforms for securing crypto, cash management, staking and, more recently, tokenization and NFT creation.

CHALLENGES 

• A favorable backdrop for securing crypto assets, after the dark days of crypto-currencies, including the Terra Luna crash, FTX bankruptcy, hacking and the bankruptcy of two US banks involved in the crypto-currency sector. Investors have become wary with the fear of losing control of their digital assets. So there is a real need for security for investors, (whether they are B2C or B2B). A promise kept by Ledger with its physical wallet.

• A fundraising to continue to innovate on these products and services and to meet the growing demand for wallet: this new funding will allow Ledger to continue to innovate in hardware as with the Ledger Stax (crypto key with a screen to display some data). But also to meet the growing demand for these wallets. In less than 5 months, more than a million new orders for wallets have been registered, bringing the total number of products in circulation to 6 million to date.

• The Ledger Stax to conquer the US: In early December 2022, Ledger launched its latest model of physical crypto wallet with a curved touchscreen, designed by Tony Fadell (creator of the iPod). While significantly more expensive than the Nano S Plus and Nano X keys ($280 vs. $79 and $149, respectively), the new Stax wallet accessorizes crypto storage tools and supports Ledger's brand image, which has already helped it differentiate itself. It's also the startup's main weapon to conquer the United States, where it has signed a partnership with the Best Buy brand (the equivalent of Fnac-Darty in France).

MARKET PERSPECTIVE 

• Ledger, which became a unicorn in 2021 after a $380 million funding round, announced that it has raised an additional €100 million in Series C funding. This complements a previous deal that took place in June 2021, for a total of €456 million raised. 

• A new Ledger Extension app for Safari and iOS was launched two weeks ago and allows the Nano X wallet to connect to NFT platforms and DApps without an intermediate wallet.

• In addition, Microsoft is reportedly working on integrating a crypto-currency wallet into its Edge browser, again with the aim of democratizing access to the world of crypto-currencies and Web3.