Tangany Closes €7M Seed Round to Continue Its Whitelabel Crypto Custody Growth Strategy

Tangany, a BaFin-regulated white-label crypto asset custody platform, has raised €7 million in the seed round led by Nauta Capital. The existing investor HTGF and the new investor C3 VC Fund also took part in the round. Tangany’s Crypto Custody service provides highly secure custody for digital assets such as Bitcoin, Ethereum, tablecoins, security tokens and NFTs. Their proprietary solution supports both hot and cold wallets to provide customers with the easiest path to blockchain adoption.

The Munich-based fintech has experienced rapid growth over the past year, adding over 25 new clients including the Tezos Foundation, Quirin Privatbank and Exporo. This growth now reflects more than EUR 400 million in digital assets under custody, quintupling its revenue by the end of 2021.

The German FinTech Prize winners have a strong European customer base and are already seeing global demand from Asia, America and Africa, indicating that Tangany’s custody solution is recognized worldwide for its quality and reliability.

Martin Kreitmair, CEO of Tangany, said: “With this successful round of financing, we are starting the next chapter in our development. We were 4x oversubscribed which shows Tangany is going in the right direction. So far, Tangany has grown on its own profitability. Our partnership with Nauta Capital, C3 VC Fund and our existing investors will allow us to accelerate our growth by expanding our team while maintaining our exceptionally high standards of quality and reliability. We will continue to innovate and couldn’t be more excited about the future.”

The team is expected to grow to more than 50 people by the end of 2022, starting with the important hire of Heinrich Polke, their new COO. The funding will also allow Tangany to add new services such as staking and yield farming to its existing core custody business. In parallel, the various business activities are streamlined for customers through a unified API and a newly added website interface.

Tangany’s mission is to drive crypto adoption and enable organizations to expand their catalog of financial products while making the transition as smooth as possible for their customers.

Markus Düttmann, Principal at Nauta Capital, comments: “Although the crypto industry has received a lot of attention lately, it has yet to bridge the gap from early adopters to the mass market. This is largely due to the underlying technical complexity that Tangany and other custodians will play a crucial role in abstracting away, thereby granting access to the next wave of crypto users. We are particularly excited about Tangany’s embedded approach, which allows anyone to seamlessly integrate cryptocurrencies into their offering.”

Theo Woik, Managing Partner of C3 VC Fund, states: “As a new investor in Tangany, we look forward to actively supporting the next stage of Tangany’s success story. Tangany is very well positioned for the next stage of evolution. Legacy banks have not yet developed adequate crypto custody solutions in-house and therefore rely on Tangany as a leading custody provider. By obtaining the license early, Tangany has a huge edge over the competition in Europe and beyond.”

Tobias Schulz, Principal at HTGF, adds: “As lead investor of the first round, we are proud of what the team has achieved so far and welcome the new investors on board. We believe that Tangany’s technology will play a crucial role in the coming era of new money.”

About Tangany

Founded in 2019, Tangany is a regulated German financial institution offering a market-leading B2B solution for custody of digital assets on the blockchain. Tangany Custody Suite allows customers to store digital assets such as cryptocurrencies (Bitcoin, Ethereum, etc.), stablecoins, security tokens, crypto securities and NFTs in either a warm or cold wallet. The facility is regulated in accordance with section 1 (1a) sentence 2 no. 1 WpHG. 6 KWG as a qualified crypto custodian. Tangany has also regularly received awards for its leading wallet infrastructure in recent years, namely the Fintech Germany Award 2020 for Seed Stage and 2021 for Investment Technology.

About Nauta Capital

Nauta Capital is a pan-European venture capital firm investing in early-stage technology companies, with offices in London, Barcelona and Berlin. With over half a billion assets under management and a team of 24 people, Nauta Capital is one of the largest B2B focused VCs in Europe. As a non-industry investor, Nauta’s key areas of interest include B2B SaaS solutions with strong network effects, vertically aligned enterprise technology transforming large industries, as well as those leveraging deep tech applications to solve challenges faced by large enterprises. Nauta has led investments in more than 60 companies including Brandwatch, HappySignals, Marfeel, Nextail, Emjoy, zenloop, Mercaux, Holded, Onna, MishiPay and Smart Protection.

About C3 Management and C3 VC Fund

C3 Management GmbH is an asset management company focused on managing venture funds investing in exceptional blockchain technology companies worldwide. Among other things, C3’s mission is to accelerate the growth, development and in particular the adoption of EOSIO-based blockchains and the EOSIO software. With that mission in mind, C3 manages the C3 VC Fund, funded in part by Block.one, which provides developers and entrepreneurs with the funding they need to launch community-driven businesses leveraging EOSIO. The C3 VC Fund focuses on early and growth stage technology companies. C3 VC Fund operates worldwide and is based in Frankfurt, Germany.

About the High-Tech Gründerfonds

High-Tech Gründerfonds (HTGF) is a seed investor that finances high-potential, technology-driven start-ups. With a total investment volume of around 900 million euros in three funds and an international partner network, the HTGF has already co-founded more than 650 start-ups since 2005. Start-up experts accompany the development of young companies. The focus of the HTGF is on high-tech start-ups in the areas of digital tech, industrial technology, life sciences, chemistry and related business areas. So far, external investors have pumped more than 4 billion euros into the HTGF portfolio through more than 1,800 follow-up financing rounds. In addition, the HTGF has successfully sold investments in more than 150 companies.

Photo by Paul Gilmore on Unsplash

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