EigenLabs, a Seattle-based staking protocol developer, has raised $50 million in a Series A funding round led by Blockchain Capital with participation from other major funds, including Electric Capital, Polychain Capital, Hack VC, Finality Capital Partners, and Coinbase Ventures. The company is preparing to launch the initial version of its EigenLayer protocol in stages throughout the year. EigenLayer allows users to “restake” tokens that are locked up to validate Ethereum so those tokens can be reused to help secure other protocols. EigenLabs aims to create a new model in which developers can easily consume trust instead of needing to build trust, and it offers powerful systems of assurances that make the crypto ecosystem safer and more useful.
EigenLabs was founded in 2021 to address the challenge of improving blockchain infrastructure without launching a new chain, a process that requires creating a trust network that offers security for the chain. In September of 2021, Ethereum shifted from a proof-of-work to a proof-of-stake consensus method that replaced crypto miners with validators, or “stakers,” who lock up tokens within the network to help keep it secure in exchange for financial reward.
EigenLayer aims to solve one of the central bottlenecks to innovation in today’s crypto ecosystem by making it easy for developers to consume trust rather than build trust. The platform offers powerful systems of assurances that make the crypto ecosystem safer and more useful. EigenLabs founder and CEO Sreeram Kannan said, “Our goal is to provide developers with a trust infrastructure that they can build upon and innovate with, without needing to bootstrap trust themselves. EigenLayer provides this trust infrastructure with the best cryptoeconomic guarantees available.”
Kannan is a seasoned tech executive and associate professor at the University of Washington, where he runs the UW Blockchain Lab. The EigenLayer team has deep experience with tech companies such as Amazon Web Services, Meta Platforms (formerly Facebook), and Microsoft, giving it the necessary skills to execute its vision.
The funding comes at a time when investors are focusing more on smaller, early-stage rounds during a protracted crypto winter that has seen investment in venture capital and other areas drop significantly. EigenLabs’ success in raising $50 million in a Series A funding round demonstrates that the crypto industry continues to attract significant investment from venture capitalists, despite the challenges of the crypto winter.
EigenLabs previously raised $14.5 million in a seed round led by Polychain Capital and Ethereal Ventures. With the new funding, the company plans to expand its engineering and research teams, build out its infrastructure and support its growing customer base. It also aims to drive widespread adoption of EigenLayer to help make the crypto ecosystem more secure, useful and accessible to as many people as possible.
The crypto ecosystem has grown rapidly in recent years, with billions of dollars invested in blockchain technology and related projects. The rise of decentralized finance, or DeFi, has further fueled growth in the sector, and the demand for secure and reliable digital assets has never been higher. EigenLabs is well-positioned to capitalize on these trends with its innovative EigenLayer protocol.
EigenLayer promises to make the process of validating Ethereum more efficient and secure, while making it easier for new protocols to launch without having to create their trust structures from scratch. This will enable developers to focus on creating new and innovative products and services, while EigenLayer handles the underlying infrastructure.
In conclusion, EigenLabs’ successful Series A funding round is a significant milestone for the company and the crypto industry as a whole. It demonstrates the continued investor interest in the sector and is a testament to the quality of EigenLabs’ team and its innovative EigenLayer protocol. With its new funds and growing customer base, EigenLabs is poised to play a leading role in the growth and development of the crypto ecosystem.
