Monad Labs, an ethereum blockchain developer, has closed a $225 mn Series A, the largest deal the sector has seen in over seven months. Crypto-focused firm Paradigm led the round, which eeking to raise between $750 mn and $850 mn for its next fund.
The fundraise is indicative of what many investors have been saying and feeling: Crypto is on the rise. The $225 mn values the only two-year company at $2 bn, according to PitchBook data
Monad Labs is blockchain developer, specifically focusing on the Ethereum ecosystem. Their work primarily revolves around optimizing smart contract capabilities and enhancing the scalability and efficiency of Ethereum-based applications, according to Crypto Market Review.
Monad Labs aims to address the scalability issues inherent in the Ethereum blockchain. By developing more efficient ways to handle transactions, they seek to enable Ethereum to support higher transaction volumes without compromising on security or decentralization.
VC investment into the vertical reached $2.5 bn globally across 485 deals in Q1, which is up 32% and 42%, respectively, from the $1.9 bn generated across 341 deals in Q4 2023
“It definitely feels like the fundraising environment is pretty active right now,” said Monad Labs CEO and co-founder Keone Hon, who also previously worked at Jump Crypto. “It feels a lot more favorable than where it was a year ago.”
“Enthusiasm has certainly returned on the venture side,” said Nic Carter, a partner at Castle Island Ventures who invested in Monad Labs’ Series A. Carter said that Hon and his team’s previous experience at Jump Crypto was a factor in joining the Series A.
Crypto startups focuses on improving the performance and capabilities of smart contracts. This includes making them more gas-efficient and enhancing their functionality to support more complex decentralized applications
A part of Monad Labs’ mission involves research into cutting-edge technology in the blockchain space. This includes exploring Layer 2 solutions, state channels, and other blockchain scaling technologies and smart contracts.
Another focus area is interoperability—developing technologies that help Ethereum interact more seamlessly with other blockchains. This is crucial for the long-term success and utility of Ethereum as a multi-chain future looms (see New Trends in the Use Crypto by Criminals).
Startups working to integrate AI into the blockchain and crypto space are finding traction with investors. Exohood Labs, a blockchain startup integrating AI, raised $112 mn in February from Livsquare Capital.
Hack VC, a Web3-focused firm, closed a $150 mn fund in February to invest in crypto AI startups. The shift has been considerable. Despite high-profile scandals and collapses, interest is returning to the crypto space.
by Peter Sonner
