Algorand collects $4m seed to support open-source service launch

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fintech insurtech wealthtech regtech ai cybertech esg news

Blockchain-based payments platform Algorand has bagged a $4m Seed financing round from Pillar and Union Square Ventures.

Boston-headquartered Algorand is a decentralised digital currency and transaction platform that helps secure transfers for any size or volume. The platform works through an open-source consensus protocol that ensures all exchanges are secure and not fraudulent.

For each block of transactions, the platform randomly selects a small group of other users to serve as a committee to reach a consensus on the transactions. Identity of those on the committee is hidden as they decide the legitimacy of the trades.

Algorand hopes to use the capital to grow both its team and technology. During the year, the company hopes to launch its open-source protocol.

Pillar investor Jamie Goldstein said, “Algorand is a sophisticated approach to addressing existing blockchain challenges––scale, settlement times, and cost. The company has the potential to fulfil the promise of a truly decentralized world.”

Last month, fellow blockchain payments company Coinify also raised capital, netting a $4.8m investment led by Nordic Eye Venture Capital. These funds were raised to support the growth of its business across new regions and to fill its funding needs until it raises a Series B later in the year.

Union Square Ventures has made a range of investments in the FinTech space. Last week, the firm led the $37.5m Series D investment in to personal finance platform Stash. Last year, the firm also took part in the $18.5m round raised by insurance support platform CoverWallet.

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