Polygon (MATIC) Lands A $450 Million Investment From Sequoia• February 8, 2022 5:52 pm • Comments
Large investment firms like Sequoia Capital and Andreessen Horowitz are starting to enter the Web 3 space now as they bet on the possible future of the internet.
Recently, Sequoia invested $450 million into well known blockchain Polygon (MATIC) which is built on top of the Ethereum blockchain.
Polygon is built as a proof of stake blockchain which aims to provide faster transactions than its main blockchain Ethereum.
Currently, the company is saying that they already have over a billion transactions to date and is doing thousands of transactions per second.
Polygon raises $450M from Sequoia Capital India, SoftBank and Tiger Global https://t.co/PiUI3q5xYP by @refsrc
— TechCrunch (@TechCrunch) February 7, 2022
The result is much faster transaction times — in the thousands per second, according to Polygon. In comparison, Ethereum’s network can handle about 15 transactions per second.
Polygon says it’s completed over a billion transactions to date and has around 2.7 million monthly active users.
Ethereum is embarking on an upgrade, called Ethereum 2.0, that would make it faster and more efficient. The upgrade still has a way to go before becoming reality, but some experts fear it poses a threat to Polygon.
For its part, Polygon says it expects demand for blockchain scaling services to remain strong even after Ethereum 2.0 is implemented.
Polygon co-founder Sandeep Nailwal says he sees the company becoming a decentralized version of Amazon Web Services, the e-commerce giant’s cloud computing arm.
Polygon’s grander ambitions form part of a movement in the crypto world known as “Web3.”
Web 3 is still a fairly new concept that is not as mainstream as its crypto counterparts.
So far, most of the attention for the concept resides in Silicon Valley spaces and is essentially a buzzword for creating a more decentralized version of the internet.
Polygon’s aim here is to be the platform that users and companies go to in order to build their Web 3 strategies.
So far, the company has already onboarded big brands like Adidas and Prada on its platform specifically within the NFT industry.
The core piece of Polygon’s ecosystem is Polygon’s own token that is called MATIC which allows for transactions on the network.
Investors are speculating that as more big name investment capital firms and brands jump in to support the Polygon platform, the more the valuation of MATIC will go up.
Polygon already recently achieved a large amount of funding from firms like Sequoia, Galaxy Digital, and Tiger Global.
It echoes a similar deal involving Solana Labs, the start-up behind Ethereum-rival Solana, which raised $314 million in a private token sale backed by Andreessen Horowitz.
Polygon plans to allocate $100 million of the funding to an “ecosystem fund” supporting the development of new projects on its network.
The rest will serve as “buffer money” to help Polygon’s 240-person team continue building out the platform in the years to come.
The company is also making a push into gaming, having recently hired former YouTube executive Ryan Wyatt as head of its game studio.
“Over the next two or three years, we’re going to point to examples of high-polish, triple-A games that are built on Polygon,” he added.
Polygon says it is now valued at $2 billion.
Sequoia Capital India led a $450 million investment in Polygon
Polygon plans to allocate $100 million of the funding to an “ecosystem fund”. The rest will serve as “buffer money” to help Polygon’s 240-person team continue building.
— edisonmai (@edisonmai2) February 7, 2022
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