Blockchain risk management platform Chaos Labs raises $55M Series A
The Israeli startup's technology has secured $765 billion in cumulative trading volume, $25 billion in loans, and $35 million in incentives.
Chaos Labs, a blockchain risk management platform, has raised $55 million in a Series A funding led by Haun Ventures, including new investors F-Prime Capital, Slow Ventures, and Spartan Capital. To date, the company has raised $70 million.
Full list of Israeli high-tech funding rounds in 2024
Chaos Labs was founded in 2021 by CEO Omer Goldberg and employs 29 people, most of whom are based in the R&D center in Tel Aviv, with offices in New York. The company stated that its technology has secured $765 billion in cumulative trading volume, $25 billion in loans, and $35 million in incentives.
Other investors who participated in this round include Lightspeed Venture Partners, Galaxy Ventures, Wintermute Ventures, PayPal Ventures, General Catalyst, Bessemer Venture Partners, and Coinbase Ventures. Angel investors also participated including OpenAI CPO Kevin Weil, Fireblocks CEO Michael Shaulov, Solana CEO Anatoly Yakovenko, Phantom CTO Francesco Agosti, and Talos CEO Anton Katz.
Chaos Labs' platform provides comprehensive economic security for crypto protocols through advanced monitoring, real-time simulations, and innovative Risk Oracles. Chaos Labs allows protocols to verify stability across all market conditions, merging off-chain observability with on-chain risk parameter adjustments. This empowers DeFi applications to adapt instantly to market volatility, allowing teams to monitor health, execute proactive changes, protect user funds, and optimize capital efficiency.
Decentralized finance applications currently depend on manual analysis and adjustment of risk parameters to ensure performance in variable market conditions. By comparison, centralized exchanges, including the Chicago Options Exchange utilize risk engines built directly on top of market data feeds.
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For Chaos Labs, this growth is part of a larger vision to empower decentralized applications with contextualized data to enhance risk management and economic security, increase capital efficiency, and achieve performance parity with their centralized counterparts. The company will use the investment funds to accelerate the development of its cutting-edge risk management platform, which includes enhanced observability tooling, innovative risk oracles, and real-time parameter recommendations.
Rapid growth combined with strong demand from customers worldwide has validated the team's thesis that data requirements are becoming more sophisticated as financial activity in the blockchain world expands and approaches trading volumes and liquidity levels in the traditional financial world. This growth demands a dynamic and advanced data infrastructure.
"Crypto is among the most volatile asset classes today. Yet, most DeFi applications remain static, relying on stale parameters that take hours or days to update. The future of decentralized finance needs modern, dynamic data infrastructure," said Chaos Labs Founder and CEO Omer Goldberg. "Market context, including volatility, liquidity depth, and bid-ask spread, is essential for real-time adjustments in high-frequency trading applications."
