Matter Labs, which develops a layer 2 solution for Ethereum (ETH), announced on the 8th that it has raised $50 million in its series B funding round.
Andreessen Horowitz (a16z), a major US venture capital firm, was the lead investor in the round that saw participation from Blockchain.com, Crypto.com, Consensys, ByBit, OKEx, Alchemy, Covalent, as well as more than 80 angel investors. Existing backers Placeholder, Dragonfly, and 1kx.
The firm has explained that the funds would be broadly used for business growth, and specifically for expanding Matter Labs technical team. Until now, the company had focused on innovation, but from now onwards, Matter Labs will work on business development, marketing, and building communities and ecosystems.
Matter Labs is the company behind an Ethereum Layer-2 scaling solution called zkSync, where ZK stands for Zero-Knowledge (Proofs). In June of this year, the company revealed that it has launched a solution called ‘zkSync 2.0’ on its testnet.
Ali Yahya, General Partner at Andreessen Horowitz, said in the company’s announcement:
“Matter Labs is extending the frontier of what is possible in web3 by solving the problem of blockchain scalability without sacrificing security, decentralization, or composability. By helping Ethereum scale, Matter Labs will unlock a whole new set of possible applications in web3. We’re thrilled to be partnering with them on that mission.”