A16z, Paradigm Lead $150M Round for Ethereum Scaling Solution Optimism at $1.65B Valuation

A16z previously led Optimism’s $25 million Series A round.

AccessTimeIconMar 17, 2022 at 6:23 p.m. UTC
Updated Mar 17, 2022 at 7:00 p.m. UTC
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Brandy covers crypto-related venture capital deals for CoinDesk.

Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Ethereum scaling solution Optimism has raised $150 million in a Series B funding round co-led by top crypto investors Paradigm and Andreessen Horowitz (a16z) at a $1.65 billion valuation. The funding will largely go toward hiring, according to a Medium post from the company.

  • Ethereum demand continues to grow as non-fungible tokens (NFT) and decentralized finance (DeFi) applications become more popular, which slows transaction times and pushes gas, or transaction, fees higher.
  • Optimism is a layer 2 scaling solution built on the Ethereum blockchain that uses a transaction execution method called optimistic rollups to improve throughput and lower transaction fees while still maintaining the security properties of the underlying blockchain.
  • Optimism has about $363 million in total value locked (TVL) on the platform, according to DeFi Llama data.
  • A16z led Optimism’s $25 million Series A round last year. At the time, Partners Chris Dixon and Arianna Simpson praised Optimism’s “exceptional team, carefully designed developer experience, major scaling benefits, years of research and testing, and full composability.”
  • Last summer, a16z launched what was then the largest fund in crypto industry history at $2.2 billion. Paradigm topped the figure with its own $2.5 billion fund launch in November.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Brandy covers crypto-related venture capital deals for CoinDesk.


Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


CoinDesk - Unknown

Brandy covers crypto-related venture capital deals for CoinDesk.