The brand new Ethereum scaling community Layer N has raised $5 million in a seed funding spherical led by PayPal co-founder Peter Thiel’s Founders Fund and funding collective dao5.
The funding spherical, introduced by Layer N on Wednesday this week, additionally noticed participation from a number of different notable crypto funding companies, together with Kraken Ventures, Mirana Ventures, GSR and Amber Group.
“We’re extremely excited to announce our $5M seed spherical led by @foundersfund and @daofive, alongside different main funds and angels,” the staff wrote in a statement on X.
It added that the funding spherical marks the venture’s “first milestone in direction of constructing Ethereum’s monetary superlayer.”
‘Ethereum’s monetary layer’
In a thread on X, Layer N manufacturers itself as “Ethereum’s monetary layer,” with low charges and excessive transaction throughput.
The thread additional described Layer N as “the primary layer 2 community on Ethereum particularly designed for and to scale DeFi,” and mentioned it “goals to rival current conventional monetary networks.”
Ethereum’s base layer has for a very long time struggled with excessive charges and sluggish transaction speeds, providing an incentive for builders to construct layers on prime of it which are higher suited to decentralized finance (DeFi) purposes.
Founders Fund’s rising crypto focus
Peter Thiel’s Founders Fund stood for $1.8 million of the entire quantity raised in Layer N’s funding spherical, the staff behind the venture confirmed to The Block.
The funding from Peter Thiel’s fund got here after it in April employed at Pantera Capital’s former co-chief funding officer, Joey Krug, as a associate.
Peter Thiel has lengthy been a proponent of Bitcoin (BTC) and crypto extra broadly, and reviews have even indicated that he might have crossed paths with Satoshi Nakamoto in Aguilla greater than 20 years in the past
Thiel’s fund additionally made headlines early this yr when it grew to become identified that it had realized greater than $1 billion in earnings from promoting off the overwhelming majority of its crypto holdings shortly earlier than the market crashed.