The smart contract company behind avalancheAva Labs, Inc., has revealed plans to raise $350 million through a funding round with a valuation of $5.25 billion, making it one of the biggest crypto startups in the world.
Ava Labs wants to compete with Ethereum and Solana
Although the funding round has not been made public, “people familiar with the discussion” revealed that Ava Labs is in the process of raising $350 million, according to the report by Bloomberg.
With the new round of funding, the company may aim to grow its business and maintain its position in the choppy market with several concerns such as the Fed’s tight stance, Bitcoin’s poor performance, inflation, and the Russian- Ukrainian, hovering above.
Founded in 2018 by Emin Gun Sirer, a professor at Cornell University, Ava Labs aims to increase its speed and reduce its transaction fees for applications as much as possible as part of its efforts to compete with Ethereum and Solana. According to data from DappRadar, Avalanche, whose token (AVAX) currently has a market capitalization of $21.5 billion, carries around 250 active applications from different spaces ranging from DeFi to gaming.
A series of financing rounds
In 2020, Ava Labs raised $12 million for one of its initiatives through a private token sale attended by Bitmain, Galaxy Digital and others. Later in 2021, Avalanche’s public blockchain ecosystem secured massive private funding of $230 million through a token sale, co-led by Three Arrows Capital and Polychain Capital.
One month in March 2022, The Avalanche Foundation has launched a $290 million funding round funds to support developers to increase the number of subnets on the blockchain.