Solana Labs raises $314 million in new funding led by A16z and Polychain Capital

Solana Labs, the developer of the Solana blockchain, has raised $314.15 million in a private token sale round led by Andreessen Horowitz (a16z) and Polychain Capital.

Other participants in the round included Alameda Research, CMS Holdings, CoinShares, Jump Trading, Multicoin Capital, Sino Global Capital, and many others. The news comes a few days after some reports said Solana could raise anywhere from $300 million to $450 million.

With fresh capital at hand, Solana Labs plans to launch an incubation studio to speed up the development of projects building on the Solana blockchain and set up a venture investing arm for the Solana ecosystem.

Solana is seen as a competitor to Ethereum, which remains the largest blockchain platform for decentralized projects and applications. Solana claims to be faster and cheaper than Ethereum to execute transactions.

Ethereum's current capacity is about 15 transactions per second. Solana's current capacity, on the other hand, is around 1,200 transactions per second. As for cost, Ethereum's average fee per transaction is about $6, while Solana's is around $0.00001.

"We are convinced that scalability and throughput in blockchain are now a solved problem," said Solana Labs co-founder and CEO Anatoly Yakovenko. "The next phase is onboarding a billion users."

This is a developing story and will be updated.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

You may also like