LO:TECH Raises $5 Million Seed Round to Transform Digital Asset Market Making
August 31, 2025
byFenoms Startup Research

LO:TECH, a startup focused on bringing honesty and transparency to digital asset market making, has successfully raised $5 million in a Seed Round. The round was led by a powerhouse lineup of investors, including 13books Capital, Lightspeed Faction VC, Veris Ventures, CRIT Ventures USA, Stake Capital Group, as well as individual backers Mark Ransford and Rodney Ngone.
Founded by Tim Meggs, LO:TECH is on a mission to re-engineer how digital asset markets operate, promising a future where liquidity, transparency, and trust are not just buzzwords, but non-negotiable standards.
The Product: Redefining Market Making
Market making - the process of providing liquidity by continuously quoting buy and sell prices - has long been a pillar of traditional finance. However, in the world of digital assets and decentralized finance (DeFi), it often suffers from opacity, inefficiency, and hidden risks.
LO:TECH is building a data-driven, real-time platform that empowers institutions and traders to make informed decisions with complete visibility. By focusing on straightforward and transparent operations, LO:TECH aims to become the trusted partner for exchanges, funds, and institutional players navigating the fast-changing crypto and DeFi ecosystem.
Why This Matters Now
The global digital asset market is in flux. Despite volatility, the blockchain and crypto sector is projected to reach $1.43 trillion by 2030, growing at a CAGR of 12.5%. At the same time, institutional adoption of digital assets is accelerating - 58% of traditional finance institutions now have crypto exposure or plan to add it within the next three years.
But the biggest hurdle? Trust.
Scandals like FTX’s collapse and liquidity crises in exchanges have made institutional players wary. The need for clear, regulated, and transparent market-making practices has never been greater. LO:TECH is capitalizing on this gap, building a platform where market efficiency and accountability converge.
And here’s the deeper insight for founders: in industries where hype dominates, the real winners are the ones who solve for credibility. LO:TECH isn’t competing by being louder or faster; it’s competing by being more trustworthy. That’s a critical playbook shift for startups. If your product becomes the one customers can trust when everything else feels unstable, you stop being a vendor - you become the infrastructure people lean on. And infrastructure is sticky. Customers rarely abandon what keeps their business standing, which means building trust early creates long-term defensibility that no short-term competitor can displace.
Industry Outlook: Where Digital Asset Market Making Is Heading
The crypto market-making industry is expected to grow significantly as institutional adoption surges. Current forecasts suggest that by 2030, over 70% of digital asset trading volumes could be facilitated by professional, regulated market makers.
Key industry drivers include:
- Institutional Adoption: Hedge funds and asset managers are projected to increase crypto exposure by 30% year-over-year as regulation matures.
- Regulatory Push: Markets like the EU (MiCA framework) and the U.S. are tightening compliance standards, making transparency non-negotiable.
- Liquidity Efficiency: As tokenization expands beyond crypto into real-world assets (RWAs), reliable liquidity will be essential to keep markets functional.
- Data as Advantage: Platforms that provide real-time data visibility will have a significant edge in helping clients manage volatility.
LO:TECH sits at the intersection of all these trends - positioned to provide the tools institutions need to trade confidently in a high-stakes environment.
Investor Lineup: A Vote of Confidence
The $5 million raise was supported by a blend of VC firms and angel investors that signal strategic alignment:
- 13books Capital and Lightspeed Faction VC bring credibility and scale from years of backing fintech and blockchain startups.
- Veris Ventures and CRIT Ventures USA offer specialized networks in digital assets.
- Stake Capital Group adds deep DeFi expertise.
- Angel investors like Mark Ransford and Rodney Ngone bring personal conviction and operational experience.
This blend of capital and expertise strengthens LO:TECH’s ability to scale quickly, while ensuring it has strategic guidance at every step.
What’s Next for LO:TECH
With $5 million in new funding, LO:TECH will focus on:
- Expanding product development for its real-time market-making platform.
- Hiring top engineering and quantitative talent to refine liquidity algorithms.
- Building partnerships with exchanges, funds, and institutional clients.
- Strengthening compliance to align with the next wave of digital asset regulations.
The next 12–18 months will be critical as LO:TECH shifts from early traction to establishing itself as a category leader in transparent digital asset market making.
Final Thoughts
LO:TECH’s $5 million raise represents more than capital - it’s a signal of change in the digital asset ecosystem. As markets mature, the winners will not be the loudest but the most trustworthy and transparent.
For the broader startup ecosystem, LO:TECH demonstrates a timeless truth: building trust at scale is the fastest way to build market dominance.