Lending Startup Parallel Finance Secures $22 Million in a Series A Funding Round

Parallel Finance announced it has raised around $22 million in a Series A financing round that valued the Polkadot and Kusama-focused DeFi protocol at $150 million.

Parallel Finance announced it has raised around $22 million in a Series A financing round
Parallel Finance | Image: Parallel Finance YouTube

The round comes 2 months after the startup secured $2 million to make DeFi a bigger piece of the Polkadot ecosystem.

According to Parallel Finance, Polychain Capital led the round. Also, the financing round saw an attendance of institutional investors, including Slow Ventures, Blockchain Capital, Lightspeed Venture Partners, and Alameda Research.

As per Parallel Finance, it wants to become a DeFi label across multiple blockchains. Also, it strives to resolve the lack of lending protocols in the Polkadot and Kusama ecosystem.

Aside from this, Parallel’s answer is a set of digital market-making, staking, and derivatives help for Polkadot. Also, for its staging-ground equivalent, Kusama.

In addition, Parallel Finance founder Yubo Ruan noted that Parallel brings many users. As a result, it has gathered 3,000 users 5 months after launch. Following this, Ruan stated,

“The reason that we bring a lot of investors – especially Polychain leading the round – is because they are one of the largest DOT holders and Kusama (KSM) holders. They want to have yield in this space, they want to have use of DeFi protocols.”

Furthermore, Ruan said that Polychain and its VC equivalent received Parallel’s governance tokens. Additionally, “We plan to do an equity [round in a] holding company in the future once we launch the protocol,” said Ruan.

Ruan also stated that they believe in a multi chain future, adding, "Polkadot is one of them that will do well, Ethereum is going to do well too, Solana is going to do well. Whenever we find problems in the space related to DeFi.”