By
Steve Muchoki
April 9th, 2024
If Monad Labs manages to secure $200 million in funding, it would be the largest crypto fundraising event of 2024 thus far.
As per a report by the Fortune publication on Monday, March 11, Monad Labs is eyeing a $200 million fundraising at a staggering $3 billion valuation. Sources familiar with the matter stated that venture capital firm Paradigm will reportedly lead this funding round.
The latest funding round for Monad Labs comes soon after its $19 million seed round was unveiled in February 2023. Reports suggest that Paradigm has shown intent to contribute $150 million and has been engaging with potential investors since late 2023 to gauge their interest in participating.
If Monad Labs manages to secure $200 million in funding, it would be the largest crypto fundraising event of 2024 thus far, according to Crunchbase’s Web3 Tracker. This achievement comes amidst Bitcoin’s ongoing surge to unprecedented highs.
Additionally, Monad Labs’ ability to attract investors underscores the enduring influence of Jump Crypto. Despite facing regulatory scrutiny from the SEC, Jump Crypto remains a significant player in the industry. Notably, two former Jump Crypto members co-founded Monad in 2022, while a third co-founder brings expertise from a non-crypto background.
Paradigm, spearheading Monad’s upcoming funding round, stands as one of the preeminent venture capital firms within the crypto realm. Founded in 2018 by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang, Paradigm boasts investments in prominent projects such as the decentralized exchange dYdX, Ethereum startup Flashbots, and the now-defunct exchange FTX. Notably, Huang provided testimony during the trial of Sam Bankman-Fried in October last year.
Sources revealed to Fortune that Paradigm has been in discussions with various potential investors since late 2023. This shows the VC firm’s interest in contributing to the funding round. The funding round spearheaded by Paradigm is likely to surpass previous funding rounds undertaken by blockchain firms in recent months, indicating a burgeoning appetite among investors for crypto-related ventures.
Growing Interest in Crypto Among VC Firms
Monad’s fundraising effort further underscores the sustained investor enthusiasm for the advancement of layer 1 and layer 2 protocols. This trend is driven by the industry’s quest for blockchains offering enhanced transaction speeds and reliability, particularly in anticipation of rising demand.
Additionally, on Monday, the layer 2 blockchain Eclipse revealed a successful $50 million Series A funding round, with Placeholder and Hack VC leading the investment.