Alchemy is valued at $ 500 million after an investment of $ 80 million

Blockchain technology provider Alchemy raised $ 80 million in a Series B funding round, bringing its valuation to $ 500 million.

Alchemy will use the cash injections to expand its development tools to other blockchains in addition to Ethereum (ETH). He also plans to expand his presence in New York and California, as well as expand into Europe and Asia.

Funding was provided by Coatue Management and Addition LP. It also included DFJ Venture Capital, Manchester United Football Club, the Glazers and the Chainsmokers.

Increased investment in blockchain

This investment is just the last year filled with expensive financing. 156 digital startups raised $ 3.1 billion this year, according to CB Insights. This is in contrast to 341 trades, which raised $ 2.3 billion throughout 2020.

“It really underscores the power of blockchain and the industry as a whole, and how blockchain has become more popular,” said Nikil Viswanathan, co-founder and CEO of Alchemy.

Blockchain independence

Alchemy was founded in 2017 and was limited to client selection. However, since it was opened to the public in August 2020, it now supports 70% of the main Ethereum applications. These include NFT platforms such as OpenSea, Nifty Gateway, SuperRare, and Makersplace. It also facilitates the implementation of Decentralized Finance (DeFi) projects.

As part of the funding, Alchemy is also looking to expand its services to other blockchains. Alchemy calls itself “blockchain agnostic,” aiming to help as many distributed computer networks as possible, said Alchemy co-founder Joe Lau.

For example, he plans to expand his tools to Flow, which is used in the popular NBA Top Shots NFT collection. “Investors see us as a bet on the blockchain industry as a whole,” Lau said.

Morgan Stanley senior independent director Tom Gloser said he invested in alchemy because of their “systemic themes.” He found their fundamental approach appealing. “I couldn’t tell you if Bitcoin (BTC) was going to rise or fall, or if I should buy Ether (ETH),” Glozer said. “I want to invest in picks and shovels. “

He says scaling will be a challenge for a company with 20 employees. “They need to scale the business to cope with the level of arrivals,” Gloser said.

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