Blockchain protocol firm, Connext Labs, known for its pioneering work in Web3 interoperability, has successfully raised $7.5m in a strategic funding round. This brings the company’s overall valuation to a whopping $250m, reinforcing its position in the FinTech industry.
Connext secured the investment from a broad range of investors, including Polychain Capital, NGC Ventures, Polygon Ventures, IOSG Ventures, Fenbushi Capital, KXVC, a_capital, No Limit Holdings, Factor, and Dokia Capital. Additional investors include notable firms such as Coinbase Ventures, Ethereal Ventures, 1k(x), #Hashed, and Scalar Capital.
As the “HTTP of Web3”, Connext is revolutionising the blockchain landscape. It enables developers to create interchain applications accessible from any network, interacting with funds and data across all blockchains simultaneously. The technology functions as a communication layer atop existing infrastructure, ensuring optimal security for users across various chains.
This fresh injection of funds is earmarked to facilitate the setup and operation of the Connext Foundation, aimed at fostering long-term growth and development of the Connext ecosystem. The Foundation will play a key role in steering the development of the protocol and channel funds towards community-led initiatives and development grants.
Connext’s journey has seen impressive milestones, with over 1.2 million crosschain transactions conducted via its network. The recent launch of its V2 in February 2023 led to rapid growth, drawing over 20,000 new users within a month and attracting 35 companies to build on its protocol, including big names like Metamask, Planet IX, and DODO.
Connext founder Arjun Bhuptani shed light on the firm’s vision, stating, “In 2020, we realised that the future of web3 was going to look a lot like the internet does today: thousands of independent blockchain networks communicating with one another to create a single interconnected experience. We pivoted our focus towards building this future as a public good. Today, Connext enables a new era of decentralised applications that, similar to applications on the web, can interact with users, data, and funds on many blockchains all at once.”
Since its inception in 2017, Connext Labs has a trailblazing record in the blockchain sector. Notable achievements include building the first payment-focused Layer-2 scalability system on Ethereum in 2018, and contributing to the creation of MolochDAO, one of the first widely used DAO frameworks, in 2019.
Joseph Lubin, Chairman at Ethereal Ventures and ConsenSys Mesh, praised the Connext protocol, saying, “The Connext protocol not only revolutionises how developers build Web3 applications but also addresses one of the most pressing issues in the blockchain landscape – security across chains. We firmly believe in Connext’s vision and are confident they have the right team and technology to create an interconnected future for all blockchain networks.”
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