Decentralized Ethereum scaling platform Polygon announced that it has raised $450 million in a private token sale. The investment round is led by one of Silicon Valley’s oldest and most successful venture capital firms, Sequoia Capital India.

Since the project began in 2017 this is Polygon’s first major financing round in which Sequoia India has invested in Polygon, a team member shared. There were 40 additional investors participated in the token round including SoftBank Vision Fund 2, Galaxy Digital, Tiger Global, Alameda Research, Animoca Brands, Spartan Fund, Dragonfly Capital, Republic Capital, Variant Fund, Alan Howard, and Kevin O’Leary.  

As per Sequoia Managing Director Shailesh Lakhani, $100 million of the raised money will be allocated to an ecosystem fund supporting the development and onboarding of new projects on the network. It will focus on to build Web3 decentralized applications, or dApps, including Polygon PoS, Polygon Edge and Polygon Avail. According to the report the remaining fund will be used as “buffer money” to sustain and pay the project’s team which consists of 240-person.

Sequoia Managing Director Shailesh Lakhani said referring to the investment that “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. 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.” The funds will be raised through a private sale of Polygon’s native token MATIC token which surged 17% after the announcement.

About Sequoia Capital:

Sequoia Capital is found in 1972, managing over $80 billion in assets. Through its Scouts program, the firm has marked in crypto since 2015. Earlier crypto-related investments include Polychain Capital, MetaStable, and Paradigm. The investment made in Polygon is its largest Web3 or crypto infrastructure yet.

Also Read | Vitalik Buterin is receiving $100m Shiba Inu back from the Covid Relief Fund

Indrani bose

CBW - External Analyst

INDIA