Wormhole Raises $225 Million at $2.5 Billion Valuation in 2023’s Largest Crypto Fundraise
Interoperable blockchain protocol Wormhole has achieved another significant milestone with a $225 million seed fund raised from a group of prominent investors in the crypto landscape.
This fundraising is the largest in the Web3 ecosystem so far this year, propelling Wormhole’s market valuation to $2.5 billion.
— Wormhole🌪 (@wormholecrypto) November 29, 2023
Key investors in this funding round include Brevan Howard, Coinbase Ventures, Multicoin Capital, Jump Trading, ParaFi, Dialectic, Borderless Capital, Arrington Capital, and undisclosed entities.
Together, these investors have provided the necessary liquidity to propel the protocol to its next development stage.
The platform also announced the launch of Wormhole Labs in a blog post – an independent blockchain company creating products, tools, and reference implementations to foster cross-chain activity and development.
Providing more details, the Wormhole team stated that the new company will significantly contribute to the overall success of the ecosystem.
However, the allocation of the $225 million between Wormhole Labs, Wormhole, and the Wormhole Foundation – an entity created to attract developer interest to the protocol – was not disclosed.
Currently, Wormhole’s immediate focus is on expanding its team through new hires to its 15-man operation.
Officially launched in 2021 as a developer messaging technology, Wormhole has expanded its services to over 30 blockchain networks.
The platform enables multiple use cases spanning decentralized finance (DeFi), non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), and community-driven governance.
Over its two-year existence, Wormhole has facilitated over $35 billion in asset transfers across its supported protocols.
The platform offers a suite of blockchain-driven products, with the Wormhole Messaging protocol playing a critical role.
Its Wormhole Connect product enables developers to access an in-app bridging widget that can be integrated with any decentralized application (dApp) in as little as three lines of code.
Rocky Journey, Not Rocky Destination
Despite being in operation for two years, the Wormhole team has been coy on releasing its native token.
Nonetheless, the team is laser-focused on delivering the most value for its institutional clients and end-users and is committed to increasing its daily 2 million cross-chain messages.
Commenting on the latest fundraising event, Wormhole Foundation’s Chief Operating Officer Dan Reecer stated that the blockchain protocol is keen on creating the right framework for developers to build with their tools and enrich the experience of their end-users down the line.
However, the journey for the protocol hasn’t always been smooth. The platform, incubated by Jump Trading in its inception, was hacked for $320 million (120,000 wETH) in February 2022 by malicious actors through its Solana bridge.
Despite the setback, the parent company promptly refunded the lost funds, but the incident left a lingering impact on investor sentiment.
The wormhole network was exploited for 120k wETH.
ETH will be added over the next hours to ensure wETH is backed 1:1. More details to come shortly.
We are working to get the network back up quickly. Thanks for your patience.
— Wormhole🌪 (@wormholecrypto) February 2, 2022
Nonetheless, the crypto space is evolving rapidly, and Wormhole is demonstrating resilience in overcoming its challenges.
Co-founder and CEO Saeed Badreg affirmed the platform’s continued focus on facilitating efficient blockchain-to-blockchain communication even after a challenging 2022.