The focus of blockchain venture funding is turning to Web3 development, with a larger emphasis on scalability. Solution for scaling on the second layer Polygon has secured $450 million in a fundraising round. It is led by some of the largest blockchain venture firms. This proves that many investors have an interest in financing Web3 development in the future.
Sequoia Capital India led the investment round, including over 40 venture capital funds, including SoftBank Vision Fund 2, Galaxy Digital, Tiger Global, and Republic Capital. Kevin O’Leary, a billionaire investor, was also a member of the fundraising effort.
Polygon plans to utilize the funds to extend its scaling solutions, including Polygon PoS, Polygon Edge, and Polygon Avail, and help Web3 apps gain general usage. After dedicating over $1 billion to zero-knowledge technology in November 2021, the team will continue to invest in it.
Polygon provides Ethereum with scaling and infrastructure assistance. It has gained much attention in the last year as the rapid expansion of decentralized finance. Moreover, NFTs have prompted worries about Ethereum’s network capacity. Sandeep Nailwal, a co-founder of Polygon, told Cointelegraph in December 2021 that Ethereum’s much-anticipated upgrade is unlikely to provide enough scalability to fulfill demand.
He elaborated:
“Even if 2.0 is introduced, it will not provide sufficient scalability.” In 2022, the proof-of-stake update will maintain everything the same; for example, Ethereum currently has 13 transactions per second [TPS]; after PoS, it may increase to 20 TPS, but not beyond that. As a result, scalability is unaffected.”
Polygon has been very active in building its developer network to fuel the next generation of decentralized applications. Polygon collaborated with Seven Seven Six, a venture capital company founded by Reddit co-founder Alexis Ohanian, to form a new $200 million Web3 fund, according to Cointelegraph.
Andreessen Horowitz, a Silicon Valley venture capital firm, said to invest another $1 billion in Web3 firms in January.
