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Offchain Labs, the company behind layer 2 scaling solution Arbitrum One, raised $120 million in Series B funding led by Lightspeed Venture Partners, they reported in a press release on Tuesday. Offchain added that they were worth $1.2 billion after this funding round, in which Ribbit Capital, Redpoint Ventures, Mark Cuban, Polychain Capital, Pantera Capital, Alameda Research, and other high-profile investors took part. The funding will be used to develop enhanced scaling solutions for Ethereum (ETH/USD).
Arbitrum One allows Ethereum users to transact with very low fees
Arbitrum One is a developer-friendly Layer 2 solution for the Ethereum network with a vast support ecosystem. Since its beta launch for developers in the spring of this year, more than 350 projects signed up for access to the platform, which minimizes transaction fees paid by Ethereum users. The platform was built in response to a pressing need to scale the crypto with the second-highest market cap without compromising on its security as the base layer.
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Amy Wu, Partner at Lightspeed, commented:
“We’ve had the pleasure of working closely with Steven, Ed and Harry. Their dedication to the Ethereum developer community is second to none and they have the best, easiest-to-use scalability product. That’s why over 400 projects have chosen to launch with Arbitrum, including Reddit.”
Steven Goldfeder, co-founder and CEO of Offchain Labs, added:
“We are excited to partner with our investors who understand the importance of scaling Ethereum and bringing the Ethereum ecosystem to the masses. The tremendous support we’ve seen from developers across the globe validates our mission to be the first to marry the world of FinTech and Defi.”
Reddit chose Arbitrum as its scaling solution for its Ethereum-based Community Points system. At the time, a Reddit administrator said:
“Arbitrum supports the same Solidity smart contracts and the same toolchain as Ethereum. Developers can launch apps on top of Community Points on this network as easily as they can on Ethereum.”
With EVM compatibility, it’s possible to deploy projects without changing contract code. Offchain Labs’ Arbitrum One mainnet became publicly accessible on August 31.