Blockchain platform for building decentralized networks Polygon raised $450 million from a group of investors. The funding round was led by Sequoia investment fund, one of the largest venture capital investors in the high-tech world.
Polygon, formerly known as the Matic Network, raised $450 million through a private sale of Matic tokens. A group of investors that includes such financial institutions as SoftBank Vision Fund 2, Tiger Global, Galaxy Digital, Sino Global Capital, Alameda Research, Digital Currency Group, Accel, Union Square Ventures and Dragonfly Capital, was led by the Indian arm of the Silicon Valley venture fund Sequoia Capital.
Investors got the opportunity to purchase Matic tokens at a discount. The size of the discount is not specified. Polygon will use the funds raised to develop projects, including scaling products such as Hermez, Miden, Zero and Nightfall, said Sandeep Nailwal, co-founder of Polygon. $100 million of the funds raised will go to the Ecosystem Fund. Nailwal added that the new capital will allow Polygon to consolidate its efforts and bring another billion users to Ethereum.
Matic Network is a layer 2 scaling solution for Ethereum. The platform allows creation and runs interconnected blockchains that are compatible with Ethereum. Polygon provides developers with extensive tools for creating blockchains with specific functionality and solves problems inherent in the Ethereum mainnet, such as insufficient bandwidth and transaction processing speed.
Since its founding in 2017, Polygon has greatly expanded its ecosystem. According to the project, more than 7,000 decentralized applications were created on the basis of the platform. Polygon’s most prominent partners include Aave, OpenSea, Mark Cuban’s Lazy.com and Dolce&Gabbana.
Andreessen Horowitz, one of Sequoia’s competitors in the investment field, also specializes in venture investments in IT startups. If a16z is already actively investing in crypto projects and even created funds aimed at financing cryptocurrency companies, then this is the first major investment in the crypto world for Sequoia Capital.