With this new funding round, Alchemy reached a valuation of $3.5 billion, an outstanding value for a company that was publicly launched just a little more than a year ago.
Alchemy, that compares its role in the blockchain ecosystem with the role of AWS in the current internet structure, has benefited enormously from the current bull market and the expansion of decentralized finance.
This growth has caused a 15x increase in revenues for the company since six months ago. This is because Alchemy offers a vertical suite of technologies that can be leveraged by several institutions in the spectrum, including financial protocols, NFT platforms, exchanges, and even multinational companies.
Ali Yahya, the general partner of A16Z, stated this moment is key for making investments in web3 infrastructure.
“We’re at a very unique time in the evolution of web3.
October. Meanwhile, the startup continues to operate with a “lean and mean” mentality. At the beginning of 2021, Alchemy had 13 employees. It now has just under 50.
Its ratio of valuation to number of employees is “one of the smallest teams to impact ratios in history,” believesNikil Viswanathan, co-founder and CEO of Alchemy.
‘AWS for blockchain’ Alchemy boosts valuation to $3.5B with $250M raise
The company’s impressive growth comes amid a volatile time in the crypto space, which has seen many ups and downs over the past year.
“You know you’re onto something special when your business continues to accelerate even though the market you operate in hits turbulence, and that’s exactly what’s happening with Alchemy,” said Amy Wu, partner at Lightspeed.
Crypto projects have exploded in 2021, and so have the blockchain infrastructure firms that power them. The latest example is Palo Alto-based Alchemy, which launched to the public barely a year ago and on Thursday announced a massive $250 million funding round.
Alchemy was founded by Stanford grads, Nikil Viswanathan and Joe Lau, who worked at Facebook and Pinterest before leveraging their Silicon Valley pedigree to build a fast-growing crypto company.
The pair like to describe Alchemy as the “AWS of blockchain”—comparing their company to Amazon’s ubiquitous cloud computing platform.
While Alchemy has an obvious interest in promoting the AWS comparison, the analogy is not inaccurate.
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The company has multiplied its revenue by 15x in the last six months, a testament to the impact it has caused on the ecosystem.
Alchemy, a web3 and blockchain infrastructure provider, has reached a milestone by raising $250 million in its series C funding round. The round was led by known VC companies a16z, Lightspeed, and Redpoint, with the participation of Coatue, Addition, DFJ, and Pantera as well.
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Its developer platform aims to remove the complexity and costs of building infrastructure while improving applications through “necessary” developer tools. It launched its offering in August of 2020.
Since that time, profitable Alchemy has seen dramatic growth on its platform. Sources familiar with internal happenings at Alchemy told TechCrunch that the startup has increased its user base by nearly 50% even just since it closed this latest round.
“Basically, the most important companies blowing up in crypto are powered by Alchemy, so by investing in Alchemy you get a broad index of the whole space,” one of those sources said. “The company basically powers the entire industry.”
Alchemy declined to reveal hard revenue figures but told TechCrunch that it has seenover 3X growth in the number of teams building on its platform since its October raise.
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There aren’t really any prior examples of growth like this to compare to, but you can look at how enduring businesses like Microsoft grew and see where Alchemy has the potential to go.”
It’s safe to say that Alchemy’s growth figures are evidence of a massive acceleration of growth in the web3 ecosystem as a whole.
In just the last 12 months, NFT marketplaces built on Alchemy have delivered more than $1.5 billion in royalties to artists, with almost $1 billion of that coming in just the last three months, the company said.
Viswanathan said the company has barely touched all the capital it previously raised. But with web3 advancing as quickly as it has been, the company wants to have the runway it needs to grow accordingly.
“We think we’re just in the first inning of web3.
There was a lot of excitement in the dot.com era about the baby internet.
Alchemy will reportedly use the funds to further grow the ecosystem by extending the reach of its tools for more web3 developers worldwide.
This includes strengthening the infrastructure around web3 services and building educational material to make it easier for future developers to be onboarded.
It will also expand globally, by funding the creation of new offices all around the world. Joe Lau, co-founder, and CTO of Alchemy thinks that blockchain and Web3 are just beginning their journey into the mainstream.
Nikil Viswanathan, co-founder, and CEO of Alchemy said:
“We’re excited to continue investing in making blockchain accessible to developers globally.
Alchemy provides an aptly-named service called Notify that automates some of the work involved in implementing notification features for blockchain applications.
Alchemy said today that it plans to open new offices and make its services more accessible by, among other things, creating educational resources for developers. The startup has no shortage of capital for investing in growth initiatives following its latest $250 million funding round.
Moreover, Alchemy co-founder and Chief Executive Officer Nikil Viswanathan (pictured, left, with co-founder and Chief Technology Officer Joe Lau),toldTechCrunch today that the startup still has all the proceeds from its previous $80 million funding round in the bank.
As proof that web3 is not some passing trend, blockchain infrastructure startup Alchemy announced today that it has closed on a $200 million Series C1 equity round that values the company at $10.2 billion.
For the unacquainted, web3 refers to a decentralized web based on the blockchain.And put simply, Alchemy wants to do for blockchain and web3 what AWS (Amazon Web Services) did for the internet.
What is remarkable about this raise is the velocity at which Alchemy has managed to grow its valuation in a relatively short period of time. In October, the startup was valued at $3.5 billion aftera $250 million Series Cround. And in late April of 2021, the startup was valued at $505 million after an$80 million Series Binvestment. This means the startup has seen its value surge by nearly 3x since October and by a staggering19.8xsince last April — just a little over nine months ago.
There are also tens of thousands of developers building new tools and services with blockchain.
“What we’ve seen is Alchemy really become the de facto platform for developers to build on web3,” Viswanathan said. “We’re super excited because we believe this year, the acceleration is turning web3 from a fringe technology used by hobbyists to everyone using products powered by web3 even if they don’t realize it.”
The startup has helped power a number of giants, including OpenSea, Adobe, Dapper Labs and Crypto Punks, among others. It makes its money by charging for compute units. In other words, its customers pay Alchemy based on the amount of computing they use.