Singapore-based Amber raises $100 million at ‘flat valuation’
The Singapore-based crypto trading company, Amber, is raising $100 million in additional capital at a $3 billion valuation, the same as in February when it raised $200 million from investors, which included Tiger Global Management and Temasek Holdings Pte.
‘Flat valuation’ due to market slump
According to insiders, the current funding round is a continuation of the prior round it conducted in February. The same sources also revealed that the firm had planned to raise at a significantly higher valuation in the second quarter. However, the decline in cryptocurrency prices caused the Amber Group to seek a so-called flat round instead, Bloomberg reports.
In May, several news reports claimed that the crypto trading firm was seeking to attract capital at a value of $10 billion, but the Amber Group declined to confirm or deny this.
According to the same insiders, the current capital raising is being handled in numerous phases, with around $50 million already secured. The company eyes one or two further closings by the end of this year or the beginning of next year.
However, the sources added that investors are increasingly hesitant to participate in large investment rounds due to the present economic climate, which is affecting the crypto industry.
Layoffs at Amber
In September this year, several news reports circulated that Amber is reducing its workforce by as much as 10 percent owing to a general market slump.
Amber Group co-founder Tiantian Kullander said that the company changes its worldwide headcount every quarter, and estimated that this year’s overall net headcount adjustment was a 5 to 10 percent drop in positions.
Kullander was quoted as saying that that company is reducing staff in roles that are “lower in priority given market conditions, and increasing headcount in roles that are higher priority.”
During last year’s crypto bull run, the firm expanded fast from 200 to 300 personnel to over 900. The latest wave of layoffs at Amber is expected to conclude this month.
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