By
Svetlana Soroka
April 25th, 2024
The fact that Root Protocol secured a substantial amount at the seed stage signals a potential shift in sentiment within the industry.
In the latest development for the Web3 space, Root Protocol, a digital identity service, has raised $10 million across two seed rounds, valuing the company at $100 million.
Led by Animoca Brands and supported by notable investors such as Signum Capital, Ankr Network, CMS Holdings, and individual backers Tekin Salimi and Meltem Demirors, Root Protocol is on a mission to streamline access to Web3 platforms through its innovative digital identity aggregator.
Root Protocol’s Vision of Unifying Access to Web3
The announcement highlighted Root Protocol’s ambitious goal of unifying access to various Web3 platforms through the creation of a comprehensive digital identity aggregator.
The platform aims to become a “one-stop station for all things decentralized identity”, providing users with a seamless experience when accessing different Web3 platforms. This endeavor aligns with the broader trend of making interactions within the decentralized ecosystem more user-friendly and seamless.
Root Protocol promises to transform how digital identities are maintained and secured. With an increasing reliance on digital platforms for a variety of services, from financial transactions to healthcare information, the demand for a reliable and interoperable digital identification solution has never been greater.
The funding success of Root Protocol stands out amid a backdrop of reduced venture capital investment in Web3 projects during the bear market of the past 18 months. From a peak of $12.14 billion raised in Q1 2022, the funding in the sector dwindled to just $2.34 billion in Q2 2023. The decline was attributed to perceived risks and uncertainties associated with Web3 projects by investors during challenging market conditions.
The fact that Root Protocol secured a substantial amount at the seed stage signals a potential shift in sentiment within the industry. A spokesperson from Root acknowledged the significance of the achievement, stating:
“Securing $10 million was indeed an accomplishment for a Web3 project, especially considering the challenges many projects faced during bear markets.”
The involvement of various investment ventures and the establishment of long-term relationships with partners have garnered attention for Root Protocol’s funding rounds. The diverse group of investors reflects a growing confidence in the potential of Web3 and decentralized identity solutions.
Jellyverse’s Seed Funding Round
While Root Protocol celebrates its successful fundraising, other players in the Decentralized Finance (DeFi) space are also making strides.
In December, Jelly Labs AG and Fintonomy LTD completed a joint seed funding round for Jellyverse. The companies secured $2 million from undisclosed investors to advance the development of Jellyverse and contribute to the evolution of the next phase in the DeFi ecosystem now dubbed DeFi 3.0.
As Root Protocol continues to build its Web3 operating system, the broader decentralized ecosystem eagerly watches, anticipating how it will contribute to making digital identity management across various platforms a more seamless and user-centric experience.