Paul Erlanger and Se Yong Park, the innovative minds behind the cryptocurrency trading app Fomo, have taken a distinctive approach to securing investment, resulting in significant success. Launched in May, Fomo recently closed a $17 million Series A funding round led by Benchmark, elevating their total funding to $19 million.
Rather than following the conventional seed funding route, Erlanger and Park crafted a list of 200 potential angel investors, recognising the potential value each could bring. Their connections from previous employment at the popular trading platform dYdX allowed them to leverage their networks for warm introductions; for those without connections, they resorted to cold calling. Impressively, 140 of these targeted investors opted to participate after hearing their pitch, with notable figures from the crypto industry, including Marc Boiron of Polygon Labs and Solana co-founder Raj Gokal, joining the ranks.
The duo shared their ambition for Fomo, portraying it as a super app that grants users access to millions of crypto assets across all blockchains without the usual technical barriers. Users can currently trade a variety of assets, including major cryptocurrencies like Bitcoin, Ethereum, and a multitude of altcoins. They aim to expand their offerings in the coming months to include a wider variety of assets, potentially encompassing prediction markets and conventional securities.
A pivotal moment occurred just a month after launch when Fomo integrated Apple Pay, which significantly enhanced user acquisition and revenue. Erlanger reported an influx that saw revenue soar to around $150,000 per week and trading volume hitting $3 million daily. The app operates with a 0.50% transaction fee, while waiving gas fees, a strategy that appeals to users focusing on major cryptocurrencies.
Fomo’s approach proved effective, leading to an introduction to Benchmark’s early-stage investor Chetan Puttagunta, further cementing their position in the market. While Benchmark typically exercises caution with cryptocurrency investments, Puttagunta recognised Fomo’s rapid growth and decided to invest, joining the board as well.
This gamble on Fomo appears promising; since the completion of the funding round in September, the app has continued to evolve, adding more assets and receiving an enthusiastic response from users. As of now, Fomo has welcomed over 120,000 users and is achieving daily trading volumes between $20 to $40 million alongside maintaining $150,000 in daily revenue. The founders remain optimistic about the future, as they work towards broadening the scope of their platform even further.
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