Alchemy, which develops “services for expanding blockchain technology,” valuates 7 times to 399 billion yen in half a year | Today Nation News

TechnologyAlchemy, which develops "services for expanding blockchain technology," valuates...

Co-founder and CEO Nikil Viswanasan and CTO Joe Lau (Image Credit: Alchemy)

Alchemy, a SaaS (Software as a Service) startup company that raised $ 80 million (about 9.1 billion yen) at a valuation of $ 505 million (about 57.5 billion yen) six months ago “. The blockchain and Web3 developer has recently raised $ 250 million in a Series C funding round with a valuation of $ 3.5 billion.

The funding, led by Andreessen Horowitz (a16z), is very much crowded with a large number of large venture companies seeking to lead as well as participate in the round, according to people familiar with the matter. The competition became fierce.

In addition to the tremendous increase in Alchemy’s valuation of seven times in half a year, the funding has attracted attention in several respects. One is that it is the largest Web3 / blockchain-related investment that a16z has ever made. In June 2021, a16z announced a $ 2.2 billion crypto fund, showing that it is working in earnest in this area. For reference, Web3 is a series of protocols centered on the blockchain, which is intended to revolutionize the back-end functions of the Internet.

What’s even more interesting is that Alchemy has achieved something that many start-ups can’t quite achieve: profitability.

According to Alchemy CEO and co-founder Nikil Viswanathan, the company is “actually very profitable.” In recent months, the demand for the services provided by the company has increased explosively, and it is said that it has achieved high profitability by increasing the profit by 15 times compared to the time of the previous funding in April. “We haven’t touched the $ 80 million raised in the Series B round,” said CTO and co-founder Joe Lau.

“All the money (of Series B) remains in the bank,” Lau said. “We didn’t need the money, but we thought it was worthwhile to work with a great partner like Horowitz, who owns a team with deep technical expertise in the field of blockchain. rice field”.

Simply put, Alchemy wants to do what AWS (Amazon Web Services) did on the Internet with blockchain / Web3. Alchemy’s goal is to be a starting point for developers looking at services on the blockchain, that is, to become the mainstream of blockchain applications. Alchemy’s developer tools aim to reduce the complexity and cost of building infrastructure by improving applications with “essential” developer tools. Alchemy started offering the service in August 2020.

Today, Alchemy is a strong backer for a variety of blockchain transactions in almost every industry, including financial institutions, exchanges, 100 billion yen decentralized financial projects, and multinational organizations including UNICEF. The company’s technology is rapidly gaining popularity as the technology that underpins all major NFT platforms, including MakersPlace, OpenSea, Nifty Gateway, SuperRare, and CryptoPunks. There is. Other Fortune 500 companies building (services) on blockchains like Dapper Labs, Axie Infinity, and recently signed Adobe, PricewaterhouseCoopers. Etc. are listed as customers and also provide services to “Most of Decentralized Finance (Decentralized Finance)”.

Transactions between Alchemy and companies around the world, which were $ 30 billion at the time of the capital increase in April, have now increased to more than $ 45 billion (about 5.12 trillion yen). The number of blockchains the company supports is also expanding.

“Our platform was more or less focused on Ethereum, but with a lot of demand, it has expanded to polygons, arbitrum, optimism, and flow,” Lau said.

Image credit: Alchemy

Viswanasan points out that there are more new developers.

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He goes on to say: “We have more teams and companies joining Alchemy, and more developers are using our platform for each team and company.” “That is, we are growing in all directions.”

Despite the explosive growth, Alchemy is still a small team. It currently employs 37 people, is headquartered in San Francisco, and has a New York office and remote staff around the world.

Alchemy will use most of its new capital to invest in building a blockchain-centric community. Company executives believe they were able to start the business at the right time in 2017, when the market was still small and the opportunities in this area were uncertain.

Mr. Lau said: “Our ultimate goal is to realize the potential of blockchain.” “By increasing resources, developers can enter this field and build services on blockchain more effectively and quickly. I want to achieve this by doing so. “

“Alchemy has played an important role in the rise and popularity of blockchain in recent years,” said Viswanasan.

He told TechCrunch: “Alchemy hasn’t just grown with the growth of the blockchain. We’re also contributing to the growth of the blockchain ecosystem.” “If we provide good tools, it’s easier for developers to create services. It will be used by more users, more developers will develop services, and we will further improve the tools … a virtuous cycle. Alchemy is helping to turn this cycle around. I think. “

Image credit: Alchemy

Ali Yahya, a16z’s general partner, described Alchemy as a “key driver” in the growth of blockchain / Web3, and Alchemy has already described Web3 as a “de facto” development. Person platform “.

“Like Microsoft and AWS have built platforms to support the computer and Internet industries, Alchemy’s platform is a blockchain service used by millions and tens of millions of people around the world,” Yahiya said in an email. It enables the construction of the platform, “he added, adding that Alchemy’s growth is” amazing “in all relevant indicators.

Google’s chairman and former Stanford University president John L. Hennessy, who invested in Alchemy’s last round, agreed with Yahya’s opinion and one more note. Made a comparison that should be done.

“Alchemy is driving the growth of the blockchain industry in the same way that AWS has made the cloud possible,” Hennessy said. “The excitement of Alchemy’s technology reminds us of Google’s early days. I write in the email.

Lightspeed Venture Partners and Redpoint also joined the Series C funding round as new investors. Cootue, Lee Fixel’s Addition, DFJ and Pantera Capital, which have already invested, have doubled their investment in Alchemy. Alchemy has raised a total of about $ 345 million since its inception in 2017.

Alchemy has been co-owned by Chainsmokers’ Mantis fund, actor Jared Leto, Glazer family (owners of the Glazer family, Tampa Bay Buccaneers and Manchester United FC), and Yahoo. Founder and former CEO Jerry Yang, Coinbase, SignalFire, Samsung, Stanford University, Charles Schwab, LinkedIn co-founder Reid Hoffman ( Reid Hoffman) and others have invested.

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(Sentence: Mary Ann Azevedo, Translation: Dragonfly)


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