Polygon raises $450 million in a private token sale to fund its Web3 development

Polygon, a decentralized Ethereum scaling platform, raised $450 million in a private token sale to fund its Web3 development.


Polygon, a decentralized Ethereum scaling platform, raised $450 million in a private token sale to fund its Web3 development.
Polygon (MATIC) Token | Image: Optimisus

This is Polygon's first significant funding round since the project began in 2017, according to the company.


Sequoia India led the financing, the firm confirmed to Blockworks. According to a spokesman, this is the company's first investment in Polygon.


In a statement, Sequoia India managing director Shailesh Lakhani stated,


"Thousands of developers across a spectrum of applications are choosing Polygon and their comprehensive suite of scaling solutions for the Ethereum ecosystem."

To explain more, Sequoia Capital India notes that this is an ambitious and proactive team that places a high importance on innovation. They are ecstatic to be leading this substantial fundraising round.


Tiger Global, SoftBank Vision Fund 2, Galaxy Digital, Republic Capital, Dragonfly Capital, and Kevin O'Leary were among the additional investors in the token round.


According to the statement, the funds would be obtained through a private sale of Polygon's MATIC token.


In a statement, Polygon Co-founder Sandeep Nailwal stated that Web3 builds on the early internet's open-source ideals, enabling users to create value, govern the network, and reap the profits.


"The bedrock of this next stage of the Web's evolution will be Ethereum, scaled by Polygon."


In addition, the network emphasizes that the funds will be used to construct Web3 decentralized applications, or dApps, such as Polygon PoS, Polygon Edge, and Polygon Avail, which are analogous to Amazon Web Services for Web2 developers.


Furthermore, the funds will be invested in zero-knowledge (ZK) technology, which will aid in the onboarding of Ethereum users.


Polygon is a set of layer-2 protocols that pursue a variety of scaling strategies. Its proof-of-stake commit chain (PoS) has some of the lowest transaction rates among crypto blockchains, making it a popular choice for Web3 services and developers such as Aave, a lending platform, and OpenSea, an NFT marketplace.


According to CoinMarketCap, the Polygon token, MATIC, has a market capitalization of around $14.7 billion and is up roughly 17 percent to $2 in the last 24 hours.