Polygon has raised $450 million through a private funding round led by Sequoia Capital India, with notable investments coming from other well-known venture capital firms including Tiger Global, SoftBank and more.
The well-known Layer 2 scaling solution Polygon announced today via an official blog post that it has raised a $450 million investment, through a private sale of its native MATIC token. The first major venture financing round of the blockchain company since its founding in the year 2017, was led by Sequoia Capital India.
The funding round saw participation of around 40 major VC firms, including Tiger Global, SoftBank Vision Fund II, Republic Capital, Galaxy Digital, Steadview Capital, Accel Partners and Elevation Capital. A few prominent individual investors like Kevin O’Leary (of Shark Tank fame) and Alan Howard (co-founder at Brevan Howard) also took part in the MATIC sale. US-based billionaire and Kevin O’Leary’s fellow Shark Tank judge Mark Cuban too had made a sizable investment in Polygon last year.
With a market cap of $14.5 billion at the time of writing, Polygon has established itself as the leading Layer 2 scaling solution for the Ethereum blockchain. It plans to use the fresh investment for consolidating its lead in the Ethereum scaling space and paving the path for mass adoption of Web3 apps. The main idea is to help Ethereum prevail over its competition. Additionally, the funds will enable Polygon to maintain its focus on zero knowledge (ZK) tech, which it believes will prove instrumental in making Web3 appealing to billions of users.
Sounding optimistic about their investment, Sequoia India’s MD Shailesh Lakhani said, “The platform of choice to build on the blockchain today is Polygon. Thousands of developers across a range of applications are choosing Polygon and their complete set of scaling solutions for the Ethereum ecosystem. This is an ambitious and aggressive team, one that values innovation at its core. Sequoia Capital India is thrilled to lead this significant financing round.”
Community First approach
Polygon’s co-founder Sandeep Nailwal stressed that the company has always adopted the community-first approach, the reason why preference was given to many of the same VC firms that had funded their previous rounds. He highlighted that a lot of their success is because of this ecosystem of early believers, stakeholders and developers.
He said, “Web3 builds on the early Internet's open-source ideals, enabling users to create the value, control the network and reap the rewards. Ethereum, scaled by Polygon, will be the bedrock of this next stage in the Web's evolution. Technological disruption didn't start with Web2, nor is it going to end there. That’s why we are very excited to see some of the same firms that funded the previous round of innovation now being our Web3 vision.”
Polygon is presently involved in developing a comprehensive suite of solutions which can be likened to what Amazon Web Services (AWS) offers to Web2 devs.
While the Polygon PoS already provides high transaction throughput, low fees and security of Ethereum mainnet to Web3 apps, Polygon Edge allows projects to develop customised blockchains from the ground up. Then there’s a scalable data availability focused blockchain under development called Polygon Avail. Lastly, the team is simultaneously working on ZK solutions which are aimed at eliminating network congestion in entirety.