According to a report by CNBC, ConsenSys has more than doubled its valuation to $7 billion following this round of funding. The cash injection of $450 million was led by ParaFi Capital, with Microsoft, Japan’s SoftBank, and Singapore’s Temasek joining as new investors in the company.
The New York-based blockchain startup was founded in 2014 by Joseph Lubin, a co-founder of Ethereum. The company designs software that runs on Ethereum’s network in addition to other blockchain solutions.
The report claims the investment represents a rare “crypto-related bet” by Microsoft. The company previously led an early-stage investment in Palm NFT Studio, another project that was co-founded by Lubin.
Microsoft’s investment in ConsenSys demonstrates a growing interest from the tech giant in Web3, which focuses on re-creating the internet in a more decentralized fashion by leveraging blockchain technology and applications.
According to CNBC, Silicon Valley has attracted a massive new wave of investment and interest in Web3 over the last year. Citing data from CB Insights, the report states blockchain-based startups raised a record $25 billion in venture capital funding globally in 2021.
ConsenSys has announced that all proceeds from the latest round of funding would be converted into ether and would be using towards hiring 600 or more employees. The start-up also intends to use funds for redesigning its MetaMask application and growing its non-fungible token (NFT) business.
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