Boba Network, an Ethereum blockchain scaling platform, announced on Tuesday that it has acquired $45 million in a series A round from investors comprising Will Smith’s Dreamers VC, Paris Hilton and her husband Carter Reum, and cryptocurrency exchange Crypto.com.
Former NFL quarterback Joe Montana, as well as crypto firms Hypersphere and Infinite Capital, invested in the round, giving Boba a $1.5 billion value.
Boba enables users to create decentralized apps on the Ethereum blockchain with more features and lower fees, as well as to transfer non-fungible tokens (NFTs) between ethereum’s layers.
According to founder Alan Chiu, the funds will be used to enhance Web3’s capabilities and invest in businesses based on its ecosystem. According to CoinMarketCap, Boba Network’s crypto token’s market capitalization increased by almost 19 percent to $272.1 million after the announcement, while its price increased to $1.71 from $1.44.
Ethereum’s “gas” fees, or the cost of completing transactions, have risen dramatically in recent years as the blockchain has grown in popularity, spawning platforms aimed at lowering costs and speeding up transactions.
Since the beginning of 2022, venture capital firms have poured money into blockchain technology startups, with SoftBank’s Vision Fund 2 and Bain Capital Ventures among those that have launched crypto-focused funds or invested in blockchain tech startups.
Developers can use Boba’s platform to create decentralized applications on the Ethereum blockchain for a lower transaction price (or “gas”).
As more developers turn to the blockchain to build apps, lowering transaction costs and building faster on Ethereum—which may be slow—has been a popular business pitch during the last year.
Polygon Technology, an India-based Layer-2 scaling platform for the Ethereum blockchain, closed a $450 million investment headed by Sequoia Capital India in February, valued at $13 billion. Polygon contributes to the Ethereum network by offloading some transaction information from the blockchain.
The fresh funds will be used to grow and scale Boba’s personnel, as well as build its ecosystem through developer programs like the Boba Accelerator, according to the company.
Venture capital (VC) is a type of private equity investment offered by venture capital firms or funds to startups, early-stage, and developing businesses that have shown great growth potential (in terms of a number of employees, annual revenue, scale of operations, etc). In exchange for equity, or a share in the company, venture capital firms or funds invest in these early-stage businesses.
