Ledger, a fast-growing startup that offers an innovative lineup of hardware wallets designed to secure crypto assets, recently announced it has added $108 million to its investment coffers. Leading the Series C extension with a $24 million investment was True Global Ventures 4 Plus (TGV). To learn why the VC firm invested in the $1.3 billion unicorn, we connected with Sergey Dashkov, Partner at TGV, who gave us the scoop.
TGV is a Singapore-based VC firm that invests in cutting-edge technology companies with unique value propositions and that have the potential to revolutionize their related industries. TGV’s investments are focused on companies with proven products that incorporate Web3 and AI technologies as competitive advantages to drive change. A few of the companies the global VC has invested in include Forge, Animoca Brands, and The Sandbox. A full list is available on their website.
The Motivation Behind the Investment in Ledger
According to Dashkov, one of TGV’s predictions for 2023 is that “centralization is dead, and decentralization is more than back.” As part of that, the firm believes that decentralized decision-making is a growing trend with significant potential. It even helped inform the firm’s decision to invest in the digital asset self-custody space, where Ledger stood out above the rest.
“Ledger is the industry leader in the digital asset self-custody space and has a proven track record of offering secure and dependable solutions for individuals and institutions,” said Dashkov. “Moreover, turbulence in traditional financial markets reinforces the importance of hardware DeFi solutions, making Ledger an indispensable product for financial security.”
Control over one’s digital assets is critical in a decentralized ecosystem, where self-custody solutions provide the necessary security and protection from breaches and theft. This is especially important given recent issues with some crypto exchanges. And that’s what has made Ledger’s L-shape trajectory possible.
“Given the vulnerabilities associated with the centralized model, which recent events like the FTX incident have exposed, there is a real need for the self-custody,” added Dashkov. “The need for reliable alternatives to centralized exchanges has become apparent, and we expect the demand for secure storage solutions like Ledger’s will continue to increase.”
What About Crypto’s Ups and Downs?
“We are currently witnessing increasing interest in cryptocurrencies as a safe-haven asset, particularly during this current period of economic uncertainty,” he said. “The resilience of DeFi and Bitcoin has already been demonstrated, and we expect the adoption of crypto to continue growing. But we are still at the beginning stages of a long journey towards the mainstream adoption of crypto.”
Since many aspects of Web3 are still in early development, much of it lacks the user-friendliness needed for mass adoption. However, as the industry matures, TGV anticipates this will change. Ultimately, the firm expects that Web3 solutions will offer a convenient and efficient method for activities such as depositing and transferring funds, etc.
Dashkov added that “regulators will play a crucial role in developing Web3, allowing it to reach its full potential. And for mainstream adoption to happen, governments and financial institutions need to recognize crypto as a legitimate form of currency.”
To that end, traditional financial institutions have started putting more resources into crypto and Web3 initiatives.
“At first, there was denial; now we see acceptance and the first steps of adaptation,” said Dashkov.
What makes Ledger a $1.3 billion company?
Dashkov explained that it’s Ledger’s triple upside that makes it a promising investment. First, it operates in a super-cycle of growth, driven by the increasing adoption of digital assets. Secondly, it is part of the decentralized segment, which is also growing rapidly. And thirdly, it is the market leader in this space. Moreover [spoiler alert!], Dashkov shared that Ledger will soon launch a new product called Ledger Stax, which is expected to reinforce the company’s market leadership.
“When it comes to self-custody, Ledger is not just a game changer but the dominant market leader,” added Dashkov. “With the launch of their new product, we anticipate Ledger’s market position to strengthen even further, proving their leadership in the industry.”
The world of Web3 can be overwhelming and confusing, especially when finding a secure way to store digital assets. But solutions like Ledger’s make it easy. And if Sergey Dashkov and his colleagues at TGV have made the right prediction, they are onto another game-changer.
To get the scoop on all five of TGV’s megatrend predictions for 2023, including the rise of decentralized AI and the mainstream adoption of open metaverses, check out their latest report.