Homegrown blockchain technology firm Polygon has raised $450 million in a round led by Sequoia Capital India as it looks to expands its portfolio of Ethereum scaling solutions and to attract the larger developer ecosystem.
The financing round also saw the participation of more than 40 investors including SoftBank Group Corp.’s Vision Fund 2, Mike Novogratz’s Galaxy Digital, Tiger Global, Alexis Ohanian and Animoca Brands Corp. among others. The company raised the funds through a private sale of Polygon’s native MATIC token.
— Polygon | $MATIC _ (@0xPolygon) February 7, 2022
“With this warchest, the core team can secure Polygon’s lead in paving the way for mass adoption of Web3 applications, a race that we believe will result in Ethereum prevailing over alternative blockchains. The funds will also allow Polygon to continue investing in cutting-edge zero knowledge (ZK) technology that will be key to onboarding the next billion users to Web3, the company said in a statement.
Originally launched as Matic Network in 2017, Polygon is one of a number of so-called Layer 2 operators, offering tools for developers who want to create decentralized apps (or dapps) and tackling the issue of network congestion, which is a growing problem on Ethereum as its popularity rises. It was founded by Sandeep Nailwal, Anurag Arjun and Jaynti Kanani. Polygon’s market capitalisation was over $13 billion at the time of going to press, with 1 token selling for about $2 a piece, according to Coingecko.com.
“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,” said Polygon co-founder Sandeep Nailwal. “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.”
“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,” said Shailesh Lakhani, MD at Sequoia India. “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.”