Global blockchain security firm CertiK has concluded an $ 80 million investment round backed by some of the largest hedge funds in cryptocurrencies, putting the company on track to hit the elevated $ 1 valuation mark. billion in the foreseeable future.
The Series B2 investment round was led by Sequoia, a California-based venture fund, with additional participation from Tiger Global, Coatue Management and GL Ventures, CertiK announced Wednesday.
In the startup world, Series B or B2 financing refers to the second round of financing a company through private equity or venture capital. CertiK has raised more than $ 140 million in the last four months, which valuation closer to $ 1 billion, the company said.
Blockchain security firm CertiK has raised substantial funds at a time when DeFi is being exploited through sophisticated attacks. https://t.co/p4ZLjnJYMj
– Cointelegraph (@Cointelegraph) August 17, 2021
CertiK will use the cash injection to further expand its product suite, especially in the software-as-a-service, or SaaS market, according to the company’s co-founding professor Ronghui Gui. The company is currently developing new SaaS products focused on security auditing, formal verification, and protection of the customer’s blockchain and smart contracts.
CertiK has seen its revenue grow 20x over the past year as more blockchain companies look to safeguard their infrastructure against active threats. Professor Gui told Cointelegraph that the growing demand for security services is a by-product of wider crypto adoption and continued innovation in the industry. “Rapid development in the market for these [crypto] projects open up susceptibility to exploits and attacks, “he said, adding that” protecting these projects against such exploits is, more than ever, an important element of the project development process. “
A key element in securing these emerging networks is blockchain and smart contract auditing, which Professor Gui described as a “rigorous process that involves [a] code implementation review “before launching a project. Continued:
“In the world of blockchains, the code is law and enforces the logic of transactions. However, the implementation of the code is unreliable and may contain bugs that lead to vulnerabilities. As an example of a vulnerability […] Take a look at the DAO exploit that is related to a recursive pattern vulnerability and resulted in a $ 150 million hack. “
The growth of decentralized finance, or DeFi, appears to have raised the risk faced by blockchain companies and users in this rapidly evolving market. DeFi has become infamous for its multi-million dollar exploits, token distribution errors, and unforeseen errors. Cointelegraph documented a total of 169 blockchain hacking incidents in the year through November, resulting in nearly $ 7 billion in lost funds. DeFi’s exploits were too common.
Related: How to improve DeFi security
Security vulnerabilities continue to be a critical point of failure for DeFi projects as more users experiment with these new protocols. The DeFi market has a current value of over $ 275 billion based on the total locked value, having grown up exponentially since mid-2020.