Flashbots, the infrastructure provider for Ethereum (ETH), has secured $60 million in its Series B funding round, indicating the possibility of a revival in the cryptocurrency bull market.
According to a July 21 filing with the Securities and Exchange Commission, Paradigm, a San Francisco-based technology investment firm, led the funding round.
It’s important to note that Flashbots chose their investors in a distinctive way.
Investors were selected for the company’s “beauty contest for decentralisation” based on their reverse pitches.
Using this strategy, the business was able to carefully choose investors who shared its future objectives and vision.
Flashbots has apparently been valued at at least $1 billion thanks to the cash, a business spokesman told Bloomberg.
What are Flashbots?
The research and development company Flashbots specialises in addressing the negative effects of maximal extractable value (MEV), which is the potential gain that network operators might obtain by previewing or rearranging blockchain transactions.
The software developed by the business intends to reduce the consequences of MEV by streamlining transactions and establishing a more equitable and productive blockchain environment.
The SUAVE platform, which was created to operate as an autonomous network serving as a transaction waiting room and decentralised block builder, is the company’s flagship product.
With SUAVE, programmers can launch intra-block apps like orderflow auctions and block builders, which enable transactions that are more affordable and private than those that are frequently found on Ethereum and other chains.
The successful funding comes at a time when cryptocurrency companies are trying to get money due to the rapid advancement of artificial intelligence (AI), which has drawn the interest of VC firms across the globe.
About $18 billion in capital was raised for the AI sector in the first quarter of this year, some of it at the expense of cryptocurrency firms.
In a Word on the Block interview with Forkast News, Mysten Labs CEO Evan Cheng claimed that venture capital funding for AI businesses now includes cryptocurrency.
Early-stage cryptocurrency businesses can still raise money, according to Cheng, despite the fact that the current crypto crash has reduced their valuations.
However, obtaining late-stage finance for startups has grown more difficult, and now only extraordinary businesses are supported. “Chang” said
“However, expansion funding becomes scarce as you reach the late Series A and Series B stages. It takes a special startup to get funded; unless you’re part of the current generative AI hype bubble, it will be harder for any firm to acquire money.