Investments in web3 startups are heating up as investors and venture capital firms pour billions of dollars into the red-hot technology space. Today, CertiK, a Web3 and blockchain security technology startup, announced it has raised $88 million for Series B3 led by Insight Partners, Tiger Global and Advent International, with participation from Wall Street giant Goldman Sachs and existing investors such as Sequoia and Lightspeed Venture has raised partners.
The announcement comes just months after the company’s latest funding round, doubling its valuation to $2 billion in just 3 months. This is CertiK’s fourth fundraising round in the past nine months, totaling $230 million.
In a statement, Certik said it experienced losses totaling $1.3 billion in cryptocurrency over the past year due to hacks. With just four months into 2022, Certik estimated its losses to date to be over $1 billion from four major bridge attacks (Ronin Network, Wormhole, Qubit Finance, and Meter.io). Both bridge-style attacks and flash loans are trending this year, and we expect many more such incidents to occur this year, further fueling the demand for pre-deployment code audits.
Founded in 2018 by computer science professors Ronghui Gu and Zhong Shao, New York City-based CertiK provides companies with a comprehensive set of security services to ensure the correctness and security of their blockchain and Web3 projects. To date, CertiK has protected over $300 billion worth of crypto assets for well over 3,200 enterprise clients. CertiK’s audit service provides pre-deployment audits and formal verification for smart contracts, blockchain protocols and Web3 apps, while Skynet provides 24/7 active on-chain monitoring of security threats.
CertiK also launched its Know Your Customer (“KYC”) and fraud detection service this year. CertiK believes that KYC is the missing link in most competitive offerings to prevent malicious intent, e.g. e.g. rug pulls, by owners of a project. Overall, CertiK’s leaderboard allows for transparency for its community and creates both trust and visibility for the projects listed there.
CertiK’s products and services continue to show strong demand and support incredible revenue growth for the company. For 2021, CertiK saw a 12x increase in revenue while its profits grew 3,000x. Despite the temporary downturn in the crypto market, CertiK’s Web3 security revenue increased 4x year-on-year in the first quarter of 2022. According to CoinMarketCap data, CertiK serves 60% of all listed blockchain projects that use third-party security audit services.
CertiK’s leadership and tremendous growth has already been widely recognized by the industry. In March 2022, CertiK received awards for the CB Insights Blockchain 50 Award – listed as the only blockchain security company – and the Globee Awards – Cybersecurity Global Excellence Award.
“CertiK is a mission-critical blockchain cybersecurity platform in a huge market and has already established itself as a clear industry leader with a high-quality product that provides comprehensive security for blockchain, smart contracts and Web3,” said Steve Ward, Managing Director at Insight Partners. “We look forward to working with CertiK’s best founding team, complete with a team of leading thought leaders in crypto security, as they continue to grow and scale.”
“We are excited to invest in CertiK as a leader in developing much-needed cybersecurity solutions for the Web3/DeFi market,” said Eric Noeth, Partner at Advent International. “The decentralized internet running on the blockchain has seen high levels of security breaches and is in dire need of the kind of effective solutions that CertiK provides. We look forward to working with the CertiK team as they continue their tremendous momentum to make blockchains more secure and performant while providing consumers with much-needed security insight into new and existing projects.”
“Goldman Sachs is excited to be an investor in CertiK, a leading security platform for the blockchain and Web3 ecosystem,” said Oli Harris, Managing Director, Goldman Sachs. “As we see continued growth in use cases and resources for decentralized applications , the solutions developed by CertiK will be an integral part of securing the ecosystem and helping accelerate the innovation and adoption of these emerging technologies.”
This new round of funding, along with proceeds from KYC, Skynet and Security Leaderboard services, will be used to develop and operate more innovative and data-driven security products. “With the increasing trends in rug pulls, we now see KYC playing an important role in Web3 security,” said CertiK Founder and CEO, Ronghui Gu. “KYC, along with smart contract auditing and 24/7 threat monitoring, will further strengthen our offering around end-to-end Web3 security services.”