Crypto Startup EthStorage Raises $7 Million in Seed Funding Round, Achieving $100 Million Valuation for its Layer 2 Ethereum Storage Solution
EthStorage, a cryptocurrency startup with a vision to enhance Ethereum‘s storage capabilities through a Layer 2 network, recently achieved a remarkable $100 million valuation in its seed funding round. Led by crypto investment fund dao5, the funding round raised $7 million, with participation from SevenX Ventures, Foresight Ventures, Sky9 Capital, Gate Ventures, and Galxe.
The funding was structured using a simple agreement for future tokens (SAFT), as revealed by Kevin Yang, managing partner at Gate Ventures. EthStorage has yet to respond to media requests for comment on the successful funding round.
Established in the previous year, EthStorage was founded by Qi Zhou, who is also the brain behind the blockchain infrastructure startup QuarkChain, initiated in 2018 after his tenure at prominent companies like Google and Meta. Notably, QuarkChain boasts its own token called QKC, currently valued at over $66 million based on CoinGecko data.
EthStorage is actively being developed as a Layer 2 storage rollup that operates on the Ethereum network. By regularly submitting storage proofs from its Layer 2 network to Ethereum’s L1 (Layer 1), the platform aims to leverage the security features of the Ethereum mainnet while significantly expanding the network’s storage capacity at a much-reduced cost. The ultimate objective is to achieve Petabytes of storage capacity with costs reduced by a factor of 1/1000.
Gate Ventures, in a recent blog post, compared EthStorage with other blockchain storage projects like Arweave and Filecoin, highlighting that EthStorage offers unique features not found in those projects. Gate Ventures believes EthStorage is leading the way in providing an innovative, cost-effective, and dynamic storage solution that has the potential to address the limitations faced by existing storage options.
It’s noteworthy that EthStorage’s successful seed round comes at a time of decreased venture capital investments in the broader crypto sector. Data compiled by The Block Pro Research reveals a decline in global venture capital investment in crypto startups for five consecutive quarters.
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