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Crypto Funding: LayerZero Makes Big Splash in $251M Week

Governance protocol M^Zero Labs picked up $22.5 million of its own as well

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Crypto startup fundraising ticked upward this week, with 18 different companies raking in approximately $251 million total — a modest increase from last week’s $227 million. 

LayerZero, a cross-chain interoperability protocol, raised $120 million in its Series B round, securing the largest raise of the group by far and acquiring a $3 billion valuation. Investors in this messaging protocol for decentralized applications (dapps) included a16z, Christie’s, Sequoia Capital and OpenSea Ventures, just to name a few.

LayerZero’s multibillion-dollar valuation comes after crypto hardware wallet maker Ledger was said to be valued at $1.4 billion after its capital raise last week. 

Blockworks previously reported that LayerZero has its eyes on the gaming industry, where cross-chain messaging is becoming integral in the distribution of digital assets players win while playing.

A focus on permissionless token creation

Shifting over to digital currency, M^Zero Labs announced it had raised $22.5 million in a seed round. The lead investor was Pantera Capital with Road Capital, AirTree Ventures and others kicking in funds as well. 

M^Zero intends to serve as a way to “permissionlessly mint currencies under decentralized governance,” according to its website. 

Luca Prosperi, founder and CEO of M^Zero Labs, posted a thread on Twitter, explaining that his product will be a “neutral financial infrastructure” on top of Ethereum.

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Prosperi told Blockworks his aim is to launch M^Zero by the end of the year. 

Other notable funding rounds this week

  • RACA, a Web3 gaming ecosystem, raised $30 million for an expansion, $16 million of which came from DWF Labs.
  • SwissBorg, a European crypto investing platform, raised $23 million in its Series A round from thousands of investors. 
  • Cryptocurrency exchange Bitget secured $10 million from Dragonfly Capital.
  • Unstoppable DeFi raised 2,050 ETH, or about $3.8 million, through the launch of their new token UND.

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