Crypto Funding: Chain Reaction Secured the Highest Haul with $70 million in Series C Funding Round

As the year is progressing, blockchain gaming is attracting a lot of financial advisors for funding. Cryptocurrency and blockchain gaming managed to raise a cumulative $254 million in last week’s funding drive, compared to $183 million for the previous one. Around 25 companies invested, with blockchain infrastructure, gaming, and decentralized finance businesses remaining the center of attention.

Here we have evaluated some of the notable funding news this week:

Chain Reaction

Chain Reaction is an Israeli semiconductor and blockchain privacy firm that raised $70 million in a Series C fundraising round that was managed by Morgan Creek Digital. Exor, KCK Capital, Atreides Management, Hanaco Ventures, Jerusalem Venture Partners, and BlueRun Ventures also invested in the round.

Mark Yuso, Chief Executive Officer of Morgan Creek Capital Management expressed his views in a statement: “Blockchain is the key to securing democracy, decentralization, and freedom, but it is compute-intensive. He further added: “Chain Reaction’s products will shore up the value of predominant blockchain technologies and revolutionize use-cases for blockchain technologies in the not-so-distant future.”

The company has now raised $115 million in cash as a result of this latest round of fundraising. The Tel Aviv-based business intends to use the additional funding to increase the size of its technological and creative groups.

Blockchain Chips

The company also expects to use the additional funding to expand its technical staff in order to speed up the creation of its blockchain silicon products, which are projected to hit the market at the end of this year. Alon Webman, co-founder and CEO of Chain Reaction, claims that the first batch of chips, dubbed “Electrum,” will begin to be mass-produced in Q1 2023.

According to Reuter, Electrum will be a very effective ASIC chip made for bitcoin mining, a market that is controlled by businesses like Bitmain. To ensure chip production in bulk, the fabless firm hired TSMC, one of Taiwan’s largest foundries. Although not revealing its value, Techcrunch believes the company is worth roughly $500 million and has raised $115 million.

Chain Reaction wants to utilize its initial batch of blockchain chips as a foundation to create more intelligent silicon that can solve cryptography issues.

The more efficient chips would be based on a method of encryption known as homomorphic encryption, which might allow them to perform operations on encrypted data without first having to decode it. This could be used in the domain of cryptography in a variety of ways, enabling more productive and confidential activities. Even with the current processing limitations, the business is confident in having a solution for cryptography issues.

Alon Webman said: We think our solution will make homomorphic encryption viable. We have unique architecture and we also understand the limitations on computing and memory among processors today. We have the solution needed to make it possible.

Here Not There

Here Not There, a decentralized group chat protocol and application, has secured $25.5 million in series A, backed by renowned startup capital company Andreessen Horowitz (a16z). In this round, Benchmark and Framework Ventures also played an active role.

The business was started by Ben Rubin, the creator of Houseparty, a well-known game and video chat application that was widely utilized during the 2020 pandemic, and Brian Meek, a former STRIVR Labs CTO and GM of Engineering at Skype. End-to-end encrypted talks are made possible by Towns, like many other decentralized communication systems. Users can join in “towns” where they can establish boundaries without being concerned that third-party players will take over their rights.

Siram Krishnan. General partner at a16z shared his thoughts: “The team’s vision for creating a digital town square where members can define the borders, set the rules, and build the world they want is an ambitious goal that is uniquely achievable through the promise of decentralization and web3.

Chaos Labs

Blockchain security consultant firm, Chaos Labs has received $20 million in a fundraising round that was jointly led by PayPal and Galaxy Digital. Others taking part in the round were Coinbase, Uniswap, Lightspeed, Bessemer, Hashkey, and a few ventures capital.

The risk management network will use the funds to continue innovating risk and security solutions to better safeguard the DeFi ecosystem. The platform has collaborated with important DeFi market players such as Aave, Chainlink, Uniswap, BENQI, and Osmosis.

“We believe that every DeFi protocol must regularly conduct robust risk testing to verify and validate that their economic system is secure against hackers and unanticipated volatility,” ​​ Omer Goldberg, the chief executive officer of Chaos Labs said in a statement. “We’re working to solve this by bringing world-class security and risk practices in running simulations of millions of economic scenarios on-chain.”

Security must remain a primary focus if greater mass adoption is to be achieved as the DeFi ecosystem expands.

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