Alchemy, a blockchain and Web3 development SaaS startup, has raised $250 million in a Series C fundraising round, valuing the company at $3.5 billion, exactly six months after collecting $80 million at a $505 million valuation. According to individuals familiar with the transaction, Andreessen Horowitz (a16z) led the financing, which was extraordinarily competitive, with a number of prominent venture firms vying to not only back but also lead the investment.
- Valuation: Aside from the fact that Alchemy’s valuation soared by 7x in six months (that’s a gain of more than $500 million per month), the round is noteworthy for a few other reasons. For starters, it’s one of a16z’s most significant Web3/blockchain investments to date. The corporation announced its $2.2 billion crypto fund in June, demonstrating its commitment to the area.
- Profits: The company is “extremely profitable,” according to CEO and co-founder Nikil Viswanathan. He claims the company has turned a corner in the last few months, with demand for its offering exploding and revenue growing 15x since its last raise in April. According to Alchemy CTO and co-founder Joe Lau, the firm has done so well that it hasn’t even touched the $80 million it raised in its Series B round.
- A team: “All that money is still in the bank,” he said. “We didn’t need the money but we saw the value in bringing on great partners, such as Andreessen, which has an incredible team with deep technical expertise in the blockchain space.”
- Applications: The startup’s purpose is to serve as a jumping-off point for developers interested in creating a blockchain-based product or mainstream blockchain applications. Its developer tool seeks to reduce the complexity and costs of infrastructure development while also boosting apps by providing “required” developer tools. In August of 2020, it introduced its offering.
- Blockchain: It has also quickly become the technology behind every major NFT platform, including MakersPlace, OpenSea, Nifty Gateway, SuperRare, and CryptoPunks. Other customers include Dapper Labs, Axie Infinity, Fortune 500s building on blockchain such as the recently signed Adobe, PricewaterhouseCoopers. It also serves “the majority of DeFi.”