A group of venture capital (VC) investors are in talks to back Ethereum scaler Polygon with an investment of between $50 million and $150 million, according to a report from TechCrunch on Monday.
- Sequoia Capital India and Steadview Capital are looking to make the investment through the purchase of MATIC tokens, the native coin of the Polygon network, TechCrunch reported, citing sources familiar with the matter.
- Polygon is a layer 2 product, which works on top of primary blockchains in order to speed up transactions. It aims to solve the scalability problems associated with the Ethereum network, which has suffered from congestion and high fees.
- If the reported plans come to fruition, it would be a sign of confidence in India-based Polygon from the venture capital market in South Asia, something which has been difficult to attain.
- Polygon has previously experienced at least one instance of its early investors asking for money back when the market took a downturn, according to TechCrunch’s report.
- Polygon, Sequoia Capital and Steadview Capital did not immediately respond to a request for comment.
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