The prospects of blockchain startups are getting brighter as Stratumn said it has raised EUR7 million in a Series C funding round.
Stratumn provides network solutions securing processes between enterprises and their stakeholders through blockchain technology and advanced cryptography.
The latest funding was raised from the Corporate Venture arm of CNP Assurances, Otium Venture, Nasdaq and Digital Currency Group.
The funding was raised less than two years after its inception and one year after its seed financing, Stratumn has now accomplished the largest funding round to date in the European blockchain and data security ecosystem.
Stratumn said it has developed more than 10 projects with large companies such as CNP Assurances, Allianz France, Nasdaq, Thales, Bureau Veritas or Bouygues Immobilier, and is currently France’s leading company using the blockchain technology in terms of staff and projects development.
The funding will accelerate Stratumn’s development and expansion into the U.S.
This funding round constitutes a major step for Stratumn, as it will allow the company to accelerate its development, notably by focusing on research, product design, and business development, as well as by continuing to attract talented individuals to join its 15-person strong international team – the company aims to double its size by the end of 2018. Stratumn also intends to develop its international activities through a planned expansion into the United States by the end of the year. This would allow the company to become closer to key stakeholders and decision centres in their core market segments.
This round, led by Open CNP, the Corporate Venture arm of CNP Assurances, with the participation of Nasdaq, Digital Currency Group and existing investor Otium Venture, combines major corporate and financial investors from France and the United States. In addition to enabling Stratumn’s development through additional funding, these investors will support Stratumn’s growth in their respective fields and geographies through partnerships and knowledge sharing, which will help the company reinforce its existing links with the insurance, capital markets and digital currency ecosystems.
Stratumn and Nasdaq have also entered into a co-research and development partnership, which aims at leveraging Proof of Process Technology to enhance the software solutions and products for the capital markets, particularly in Nasdaq’s Market Technology business and its own enterprise technology unit.
Richard Caetano, Co-founder and CEO of Stratumn declared: “We are very pleased to have successfully closed this series A round, which represents a major milestone for Stratumn. Our new investors will enable Stratumn to continue and accelerate its development and more effectively address growing needs in our markets. We are especially happy with the continued and increased support from Otium Venture, who have accompanied us for a year, and excited to welcome CNP Assurances, Nasdaq and Digital Currency Group, who will help us reinforce Stratumn’s presence in the insurance and capital markets sectors. We are very confident about Stratumn’s development prospects in the upcoming months and years. The successful closing of this round, as well as our investor’s commitment as strategic partners, is rocket fuel which will power the development and launch of Proof of Process Technology.”
Magali Noé, CDO of CNP Assurances said: “Blockchain technology makes processes more reliable and streamlines information flows for consortiums. We would like to promote this technology to our partners and to insurance industry players using the Proof of Process Technology developed by Stratumn. This investment is part of the €100 million that CNP Assurances allocates to start-ups over a five-year period through its Open CNP programme and is the fourth Open CNP investment to date.”
Bruno Raillard, Partner at Otium Venture, added: “We have been strong supporters since Stratumn’s seed round one year ago. We were struck by the clarity and ambition of Richard’s vision: enabling companies to embed security, traceability and transparency into their mission-critical business processes. The opportunity is massive. It’s not about the $40bn+ of potential savings on compliance and back-office costs in capital markets, insurance and energy alone; it’s about building the layer of trust that the network economy really needs to blossom. We’re thrilled to see Stratumn grow and to be part of this important step.”
Nasdaq Head of Corporate Strategy Jean-Jacques Louis said: “An investment in Stratumn was a natural development for us given the experimentation projects we have successfully executed with Richard and his team over the past year. We look forward to furthering our relationship between Stratumn and our technology team by collaborating on developing and applying unique financial technology that will bolster and strengthen the current and next generation products for our customers and ourselves. This approach fits with the mission of Nasdaq and, in particularly, our newly formed Nasdaq Ventures.”
Digital Currency Group CEO Barry Silbert said: “We are eager to have Stratumn join the DCG family, which now includes 100 companies across 28 countries. Stratumn’s Proof of Process Technology solves critical challenges around verifying and auditing the integrity of data used to make critical business decisions, and we look forward to helping the team build partnerships across our network of blockchain service providers and enterprises.”
Stratumn was founded in Paris in 2015 by Richard Caetano, an American entrepreneur, Stephan Florquin and Sebastien Couture, Stratumn develops network technology to secure processes between enterprise partners, customers and regulators.
According to its disclosure, its Proof of Process Technology combines blockchain networks and advanced cryptography to streamline and secure the critical processes between organisations while insuring data privacy and reducing operational frictions and costs.