Home News VCs in talks to invest $50-$150M in Polygon: Report

VCs in talks to invest $50-$150M in Polygon: Report


The Polygon project team is negotiating with a group of venture investors to raise $50 million – $150 million through the purchase of native MATIC tokens. TechCrunch writes about this with reference to sources.

Thus, Sequoia Capital India and Steadview Capital were among the participants in a potential deal; to invest in a network of secure Layer 2 (L2) solutions and autonomous sidechains.

According to sources, investors can purchase tokens at a 20% discount to the average MATIC price over the past month. In addition, the terms are still subject to discussion.

The demand of one of early investors to return funds during the bear market

The publication noted that earlier the startup had to face the demand of one of the early investors to return funds during the bear market. The founders of Polygon managed to solve this issue and continue development.

Previously in November, the team presented a solution for scaling Ethereum based on ZK-Rollups. Also, they released its central component – a virtual machine using the ZK-Starks protocol as a basic proof system.

The solution name is Polygon Miden. This is an open-source project. Bobbin Threadbare, the creator of the Winterfell cryptographic library, which Novi from Facebook is using, led the development.

Hermez Network acquisition and Mark Cuban investment

In August, Polygon acquired the Hermez Network platform specializing in this technology. A deal worth $ 250 million. This represented about 12.5% ​​of Polygon’s treasury and 2.5% of MATIC’s total supply. Hermez’s offerings merged into Polygon under the new name Polygon Hermez. They also combine their own tokens – MATIC and HEZ. In addition, as part of the deal, 26 Hermez employees joined the Polygon team.

Mihailo Bjelic, the co-founder at Polygon, noted that this is the first-ever full-scale merger of blockchain networks in which one network completely absorbs another, including its token.

Earlier in May, billionaire Mark Cuban invested in the project. Investments from a billionaire provoked the growth of the native token of the Polygon project (MATIC) by 40%. According to Cuban, he is a Polygon user himself and is using it “more and more”. However, exactly how much Cuban plans to invest in Polygon remains unknown.

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