As Demand For Web3 Security Develops, SoftBank Leads A $60 Million CertiK Funding Round.

CertiK, a blockchain security business, has raised $60 million in funding from SoftBank Vision Fund II and Tiger Global, bringing its total capital to $290 million in just nine months.

The funding comes at a time when the blockchain community is driving development of Web3 applications and inventing new use cases for virtual ecosystems, particularly in gaming, nonfungible tokens (NFTs), and decentralized finance (DeFi).

In a written statement, CertiK’s VP of marketing Monier Jalal said, “When development moves at breakneck speed, mistakes happen.” He went on to say:

“With current Web3 development, security most often is an afterthought — and this is the danger. Early-stage maturity around new infrastructure, e.g., cross-chain bridges or DeFi lending schemes, e.g. flash loans, are targets for hackers.”

Digital assets and DeFi protocols, according to Jalal, have a “financial nature” that makes their benefits far greater than anything witnessed in the Web2 era. “The magnitude of the impact, combined with rising Web3 development trends and resulting hacks, is driving the demand for Web3 security,” he said.

Blockchain security services have received a lot of attention from venture capital. CertiK raised $88 million in Series B3 fundraising earlier this month, more than doubling its valuation to $2 billion, in a round led by Insight Partners, Tiger Global, and Advent International. The startup raised $80 million in a Sequoia-led investment round in December 2021.

In the crypto business, security holes are a common topic of discussion. According to information released in January by bug bounty service ImmuneFi, DeFi attacks drained over $10.2 billion in funds in 2021 alone. The Ronin bridge of Axie Infinity was hacked for over $600 million earlier this month after attackers gained access to the private keys of validator nodes.

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