Scaling solution for Layer 2 Polygon has raised $450 million in a funding round led by some of blockchain’s largest venture funds, demonstrating that significant investors are interested in supporting the future of Web3 development.
Sequoia Capital India led the investment round, which included participation from more than 40 venture capital funds, including SoftBank Vision Fund 2, Galaxy Digital, Tiger Global, and Republic Capital. Kevin O’Leary, a billionaire investor, also took part in the fundraising.
Polygon will use the funds to grow its scaling solutions, which include Polygon PoS, Polygon Edge, and Polygon Avail, as well as to encourage Web3 application general adoption. After devoting over $1 billion to such initiatives in November 2021, the team will also continue to invest in zero-knowledge technology.
Polygon, which provides scalability and infrastructure support to Ethereum, has received a lot of attention in the last year, as the dramatic expansion of decentralized finance and nonfungible tokens has prompted concerns about Ethereum’s network capacity. Polygon co-founder Sandeep Nailwal said in December 2021 that Ethereum’s much-anticipated upgrade is unlikely to provide enough scalability to meet demand. He elaborated:
“Even if 2.0 comes in here, that will not provide enough scalability. [In 2022], the proof-of-stake upgrade will keep everything the same; like Ethereum has 13 transactions per second [TPS] right now, maybe it will go to 20 TPS [after PoS], but not more than that. So that does not add anything to scalability.”
Concerning Web3, the altcoin has been very active in growing its developer network in order to fuel the next generation of decentralized applications. Polygon has joined with Seven Seven Six, a venture capital firm founded by Reddit co-founder Alexis Ohanian, to build a new $200 million Web3 fund, according to Cointelegraph.
In January, Silicon Valley venture capital firm Andreessen Horowitz announced another $1 billion commitment to Web3 startups.