DeFi Startups

Investors Writing Larger Cheques for DeFi Startups

DeFi Startups

The market has seen venture capitalists writing big checks for startups in the crypto and DeFi space. Blockchain service and stablecoin provider Paxos has raised $300 million from PayPal Ventures and others. Also, Ethereum scaling solution provider Polygon launches a $150 million fund to support DeFi adoption. Is the 2021 fundraising season underway?

Paxos, the back-end provider for PayPal and Venmo, announced the completion of its $300 million Series D round led by FinTech venture capital firm Oak. Previous investors Declaration Partners, PayPal Ventures, Mithril Capital and others also participated. The new funding round, which values Paxos at $2.4 billion, comes after its $142 million Series C in December. 

 Another institution-focused digital asset custody firm, Berlin-based Finoa, has closed a 22 million Series A funding round. Finoa now has a list of over 250 customers including CoinList. It plans to become a regulated platform for institutional investors and corporations to manage their digital assets. It competes against larger players such as Anchorage, Coinbase Custody and BitGo. 

A new crypto derivatives exchange, GlobeDX announced that it has raised $18 million from investors like Y Combinator and Tim Draper’s Draper Dragon fund. Other investors included crypto exchange OKEx, Pantera Capital, CMT Digital and Wave Financial. Built by Y Combinator alumni Shaun Ng and James West, the platform schedules for launch in early May.

 

Polygon Launches $150M Fund to Boost DeFi Adoption

More to come: Fixed-rate crypto lending startup Notional Finance raised $10 million in a Series A round led by Pantera Capital. VC firms Parafi, Spartan Group, and others also joined the round. CEO Teddy Woodward said Notional has executed $10 million in loans since its official launch last autumn. 

Last but not least, Polygon has launched a $150 million fund. The Ethereum-based scaling technology platform, formerly known as Matic, aims to make DeFi more accessible to end users. 

The so-called #DeFiforAll Fund will focus on investing in developers and projects efficiently bringing the benefits of DeFi, farming and lending to a larger user base.

Polygon has committed up to 2% of the total supply of $MATIC tokens – $150 million at the time of the announcement – for the fund to support DeFi projects over the next 2 to 3 years. 

“We want to support the top DeFi protocols on Ethereum and help them scale and grow with Polygon,” Polygon co-founder Sandeep Nailwal said in a statement.