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Andalusia Labs

Fintech · Abu Dhabi, United Arab Emirates · Founded 2021

Andalusia Labs is a technology firm focused on developing risk management infrastructure for digital assets. The company provides a suite of products aimed at securing blockchain-based applications, operating within the rapidly expanding decentralized finance (DeFi) and Web3 markets. The company was co-founded by Raouf Ben-Har and Drew Patel. Ben-Har, who serves as the CEO, previously held roles at Coinbase, the Abu Dhabi Investment Authority, and Social Capital. Patel, the Chief Risk Officer, brings experience from his time at another DeFi protocol and as an investor at a venture capital firm. Their combined expertise in both traditional finance and the crypto space underpins the company's strategic direction. Andalusia Labs achieved a significant milestone by reaching a valuation of over $1 billion within approximately 10 months of its launch, making it one of the faster companies to attain unicorn status. This rapid growth was fueled by a $48 million Series A funding round led by Lightspeed Venture Partners, with notable participation from Mubadala Capital, the Abu Dhabi sovereign wealth fund. The round also attracted investment from other prominent firms such as Pantera Capital, Framework Ventures, and Bain Capital Crypto. The firm's product ecosystem includes three main pillars: the Karak blockchain, the Subsea platform, and the Risk-Managed Institutional Vaults (RMIVs). Karak is a Layer 2 blockchain designed with a primary focus on risk management for decentralized applications. Subsea is a risk management marketplace for on-chain assets, enabling developers to create and deploy sophisticated risk management tools. The RMIVs are designed to offer secure, risk-managed yield opportunities for institutional clients, bridging the gap between traditional finance and DeFi. The business model centers on providing this foundational infrastructure to developers and institutions, likely generating revenue through transaction fees, licensing, or service fees associated with its platforms. Keywords: digital asset security, risk management infrastructure, Layer 2 blockchain, decentralized finance, Web3, institutional crypto, on-chain asset management, smart contracts, blockchain security, DeFi protocols