Key Takeaways
- • Gary Cardone has doubled his investment in Node40, a blockchain nodes management startup, from $4 million to $8 million through his Card1Ventures venture capital firm, as the company pursues a $12 million Series A funding round.
- • Node40, founded in 2014 and based in New York, provides institutional-grade crypto transaction accounting and digital asset tracking solutions designed to meet regulatory and forensic requirements for large financial institutions.
- • Cardone is targeting a B2B institutional market rather than consumer applications, with Node40 planning to expand into supply chain, healthcare, and banking verticals to serve firms like Goldman Sachs, Fidelity, and Ernst & Young.
- • The investment reflects Cardone's strategic pivot from direct cryptocurrency holdings to infrastructure and compliance plays, positioning blockchain-based financial tooling as a volatility hedge within his broader crypto market exposure.
- • Cardone's relationship with Node40 CEO Perry Woodin originated through a LinkedIn connection that evolved into a two-week in-person engagement at Cardone's Tierra Verde estate, establishing the trust foundation for the investment partnership.
Summary
Gary Cardone, co-founder and former CEO of Chargebacks 911, a Clearwater-based fraud mitigation firm, has escalated his commitment to Node40, a New York blockchain startup specializing in crypto transaction accounting. Cardone's investment vehicle, Card1Ventures, initially deployed $4 million earlier in 2023 and has now increased that position to $8 million as Node40 pursues a $12 million Series A funding round.
Node40, established in 2014, addresses a critical institutional need: simplifying the accounting and forensic tracking of cryptocurrency transactions—from purchases and transfers to sales—across blockchain networks. The company's software is designed to meet regulatory compliance requirements rather than serve consumer-facing applications, a distinction Cardone emphasizes as fundamental to his investment thesis. The platform targets large-scale financial institutions, including investment banks and fintech operators such as Goldman Sachs, Fidelity, and Ernst & Young, where regulatory documentation and transaction forensics are non-negotiable operational requirements.
Cardone's rationale extends beyond portfolio diversification into crypto infrastructure. He characterized the Node40 investment as providing "deep access to the crypto market" while simultaneously "removing the volatility of the underlying asset"—a strategic alternative to direct Bitcoin holdings. This positioning reflects a broader institutional trend toward blockchain-based financial infrastructure that generates revenue through B2B services rather than asset appreciation speculation.
Node40 intends to deploy the additional capital across verticals including supply chain, healthcare, and banking, expanding beyond its current cryptocurrency accounting focus. Cardone's investment partnership originated through a LinkedIn connection with Node40 CEO Perry Woodin, whom Cardone invited to his Tierra Verde estate for a two-week engagement. This extended in-person period resulted in sufficient relationship-building to execute the investment agreement, demonstrating Cardone's relationship-first investment approach alongside traditional due diligence mechanisms.
Node40, established in 2014, addresses a critical institutional need: simplifying the accounting and forensic tracking of cryptocurrency transactions—from purchases and transfers to sales—across blockchain networks. The company's software is designed to meet regulatory compliance requirements rather than serve consumer-facing applications, a distinction Cardone emphasizes as fundamental to his investment thesis. The platform targets large-scale financial institutions, including investment banks and fintech operators such as Goldman Sachs, Fidelity, and Ernst & Young, where regulatory documentation and transaction forensics are non-negotiable operational requirements.
Cardone's rationale extends beyond portfolio diversification into crypto infrastructure. He characterized the Node40 investment as providing "deep access to the crypto market" while simultaneously "removing the volatility of the underlying asset"—a strategic alternative to direct Bitcoin holdings. This positioning reflects a broader institutional trend toward blockchain-based financial infrastructure that generates revenue through B2B services rather than asset appreciation speculation.
Node40 intends to deploy the additional capital across verticals including supply chain, healthcare, and banking, expanding beyond its current cryptocurrency accounting focus. Cardone's investment partnership originated through a LinkedIn connection with Node40 CEO Perry Woodin, whom Cardone invited to his Tierra Verde estate for a two-week engagement. This extended in-person period resulted in sufficient relationship-building to execute the investment agreement, demonstrating Cardone's relationship-first investment approach alongside traditional due diligence mechanisms.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.