Carapace raises $2.5 million from NFX, Tidan Capital, and others

• ByStartupStory     |    October 20, 2022

Carapace, a protocol to connect buyers and sellers of protection against default risk for under-collateralized DeFi (decentralized finance) loans, secured $2.5 million from NFX, Titan Capital, and other prominent investors in a pre-seed round for its development business Starlings Lab and the debut of its test version.

The fund will go toward expanding the technical team and deploying the protocol.

Taisuke Mino and Rohit Sabnis co-founded Carapace, which is developing a technology for decentralized protection against default risk in unsecured crypto loans.

“Cryptoloans are growing at an incredible pace, from a nominal amount to more than $25B last year, and will only continue to explode. With very little protection for lenders of under-collateralized loans, Carapace’s protocol will provide a key piece of infrastructure that DeFi will need to grow,” said Morgan Beller, General Partner at NFX, in a statement.

“The current bear market for crypto has forced participants to be more aware of the return-risk tradeoff on their investments. We help investors understand and mitigate credit risk on their DeFi loans,” said Rohit Sabnis, Cofounder of Carapace, in a statement.

In terms of hiring, India will be a primary emphasis for Carapace, as the protocol hopes to tap into the country’s enormous talent pool of engineers and credit specialists.

Follow Startup Story