The DeFi platform Folks Finance gets $3.2 million in Series A funding at a value of $75 million

Folks Finance co-founder and CEO Benedetto Biondi informed The Block that the round increased the equity and token FDV of the company to $75 million.

Folks Finance, a cross-chain decentralized finance (DeFi) platform, has secured $3.2 million in a Series A round, thereby increasing its valuation to $75 million.

Folks Finance announced on Thursday that Borderless Capital was the lead investor in the round, with Mapleblock Capital, Algorand Ventures, Sovo Ventures, and other investors also contributing. The round was characterized as “oversubscribed,” despite the fact that $3.2 million is a relatively modest Series A. In an interview with The Block, Benedetto Biondi, the CEO and co-founder of Folks Finance, disclosed that the platform’s initial objective was to raise $2 million at a $50 million valuation. However, investor interest ultimately surpassed this objective.

Biondi stated that the initial $2 million of the round was raised in February of this year, while the remaining $1.2 million was raised more recently. He declined to make any comments regarding the round’s structure; however, he did state that the $75 million represents the equity valuation and the fully diluted token valuation (FDV), which suggests that Folks Finance may launch a token in the future.

Folks Finance’s aggregate funding has reached $6.2 million as a result of the Series A round. Previously, it secured $3 million in a pilot round from investors such as Coinbase Ventures, Jump Crypto, OKX Ventures, and ParaFi Capital.

Folks Finance is a cross-chain DeFi platform that provides its xChain software, which allows users to manage, trade, lend, and borrow digital assets across multiple blockchains, including Ethereum, Base, Arbitrum, Avalanche, and BNB Chain.

“xChain provides unparalleled flexibility and efficiency across ecosystems by enabling individuals to deposit assets on one chain and borrow on another, utilizing Chainlink’s Cross-Chain Interoperability Protocol (CCIP), Wormhole, and Circle’s Cross-Chain Transfer Protocol (CCTP),” according to Folks Finance.

Avalanche is the node or central chain for Folks Finance’s cross-chain protocol, according to Biondi. Algorand was the foundation of Folks Finance’s initial versions 1 and 2, but it is no longer incorporated into cross-chain V3. Biondi stated that the platform is capable of integrating both chains that are compatible with the Ethereum Virtual Machine (EVM) and those that are not. He also stated that Folks Finance intends to provide support for additional blockchains, such as the Layer 2 network Linea, which is incubated by Consensys, Polygon, Optimism, and ZKsync.

In 2022, Folks Finance introduced its platform, which presently boasts over 15,000 active monthly accounts and a total value locked (TVL) of over $100 million. In March of this year, the TVL reached an all-time peak of over $220 million.

Biondi intends to augment the Folks Finance team by recruiting backend and interface developers, as well as professionals who specialize in the development of regional communities. The team currently consists of 20 members.

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