Blockchain venture capital firms are refocusing their efforts on Web3 development and putting a premium on scalability.
Scaling solution at the layer-2 level Polygon has secured $450 million in a fundraising round led by some of the blockchain industry’s largest venture capital firms, demonstrating once again that significant investors are interested in supporting the future of Web3 development.
Sequoia Capital India led the investment round, which included over 40 venture capital firms, including SoftBank Vision Fund 2, Galaxy Digital, Tiger Global, and Republic Capital. Kevin O’Leary, a billionaire investor, also engaged in the fundraising.
Polygon will utilise the financing to extend its scaling solutions, which include Polygon PoS, Polygon Edge, and Polygon Avail, and to promote Web3 application usage on a broad scale. Additionally, the team will continue to invest in zero-knowledge technologies after a $1 billion commitment to such programmes in November 2021.
Polygon, which provides Ethereum with scalability and infrastructure support, has garnered substantial attention in the last year as the dramatic expansion of decentralised finance and nonfungible tokens prompted worries about Ethereum’s network capacity. Sandeep Nailwal, the co-founder of Polygon, said in a December 2021 interview with Cointelegraph that Ethereum’s much-anticipated upgrade is unlikely to offer sufficient scalability to fulfil demand. He elaborated:
“Even if 2.0 is introduced here, it will not offer sufficient scalability. [In 2022], the proof-of-stake update will maintain everything the same; for example, Ethereum now supports 13 transactions per second [TPS], and will likely reach 20 TPS [after PoS], but not more. As a result, this adds no value to scalability.”
Regarding Web3, Polygon has been very active in growing its developer network in order to power the next generation of decentralised apps. Polygon has joined with Seven Seven Six, a venture capital company run by Reddit co-founder Alexis Ohanian, to build a new $200 million Web3 fund, as Cointelegraph previously reported.
In January, Silicon Valley venture capital firm Andreessen Horowitz announced another $1 billion commitment to Web3 businesses.
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