THE crypto market downturn has served as a major reality check for startups looking to secure new cash.

Digital asset trading platform Amber Group is in the process of raising a little over US$100 million in fresh funding at a US$3 billion valuation, according to a person familiar with the matter. The Singapore-based startup had the same valuation in its most recent US$200 million fundraise in February, which included Temasek Holdings and Tiger Global Management as investors.

The new funding is an extension of that previous round, said the person, who asked not to be identified discussing private information. They said that Amber Group had previously aimed to raise at a much higher valuation in the second quarter, but the slump in crypto prices prompted the company to pursue a so-called flat round instead. Bloomberg News reported in May that the company was looking to raise funds at a US$10 billion valuation.

Amber Group declined to comment.

The new raise is being completed in multiple parts, with around half of the US$100 million already secured, according to the person. The company plans to have either one or two more additional closings by the end of this year or in early 2023. The fundraise is structured this way because investors are more cautious about participating in big funding rounds given current conditions, the person said.

Like other crypto and tech companies, Amber Group has conducted major layoffs. The company cut as much as 10 per cent of its staff, Bloomberg News reported in September. During last year’s crypto bull run, the company grew rapidly to around 900 employees, from a team of 200 to 300. Amber will finish a final round of layoffs this month, according to the person familiar. BLOOMBERG

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