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Polygon Raises $450 Million as Sequoia Capital Bets on Web3


Key Takeaways Polygon has raised $450 million in an investment round led by Sequoia Capital India. Polygon says it will use the capital for its ecosystem fund and to pay its team. Polygon’s native token, MATIC, is up 17% after the announcement. Share this article Polygon closed a $450 million raise. Sequoia Capital, one of the oldest and most successful venture capital firms in Silicon Valley, led the round. Polygon raises $450 million Venture capital firms take notice of Polygon. The Ethereum scaling solution announced it closed a $450 million round of funding Monday. Sequoia Capital India led the round, while other participants included SoftBank, Galaxy Digital, Tiger Global, Alameda Research, Animoca Brands, Spartan Fund, Dragonfly Capital, Variant Fund and Kevin O’Leary. Founded in 1972, Sequoia Capital is one of Silicon Valley’s oldest and most renowned venture capital firms, managing more than $80 billion in assets. The company has been in the crypto business since 2015, making a handful of small bets in the space through its Scouts program. The previous crypto-related investments include Polychain Capital, MetaStable and Paradigm. However, the latest investment in Polygon is the largest Web3 or crypto infrastructure bet to date. Commenting on the investment, Sequoia Managing Director Shailesh Lakhani said: “The platform of choice to build on the blockchain today is Polygon. Thousands of developers in a range of applications choose Polygon and their complete set of scaling solutions for the Ethereum ecosystem. This is an ambitious and aggressive team, a team that values ​​innovation. Sequoia Capital India is delighted to lead this important round of financing.” According to the statement, Polygon will allocate $100 million of the newly raised money to an ecosystem fund that will support the development and onboarding of new projects on the network. The rest will reportedly be used as “buffer money” to support the project’s 240-strong team. Polygon, with a current market cap of approximately $13.3 billion, is Ethereum’s leading sidechain scaling solution. In 2021, it enjoyed a rush of interest after attracting leading Ethereum native DeFi protocols such as Aave and Curve Finance. Polygon has also expanded its portfolio of Ethereum scaling technologies over the past year. In December, it acquired Mir, a startup developing zero-knowledge proofs-based scaling solutions, for $400 million. It also bought the EVM-compatible ZK-Rollup protocol Hermez for $200 million last year. Due to Ethereum’s ongoing scaling challenges, projects such as Polygon, the Layer 2 protocols Optimism and Arbitrum, and alternative Layer 1 blockchains such as Solana and Avalanche have seen a surge in market valuations, usage, and popularity over the past two years. Accordingly, Andreessen Horowitz, Sequoia’s arch-rival in the VC world, has spent hundreds of millions of dollars in Layer 1 protocols such as NEAR, Dfinity, Celo, and Chia over the same period. With the Polygon bet, Sequoia is now signaling that it wants a slice of the growing Web3 pie. Following the announcement, Polygon’s native token MATIC is up 17% that day, from around $1.80 to $1.98. Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies. Share this article The information on or accessible through this website was obtained from independent sources believed to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness or accuracy of any information contained on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not provide personal investment advice or other financial advice. 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