QUICK TAKE
- Taiko Labs confidently secured two rounds of funding, each led by industry powerhouses Sequoia China and Generative Ventures.
- The startup is confidently developing a groundbreaking Type 1 zkEVM, an indispensable solution endorsed by none other than the visionary Vitalik Buterin himself, to address the paramount challenge of scaling the Ethereum blockchain.
Taiko Labs, a dynamic crypto startup dedicated to scaling the Ethereum blockchain, has successfully raised an impressive $22 million in funding across two rounds. The initial round, a seed raise of $10 million, was led by the renowned Sequoia China and concluded in the third quarter of 2022. Following this triumph, Taiko recently secured an additional $12 million in a pre-Series A round, with Generative Ventures spearheading the investment, as confirmed by co-founder Daniel Wang in an exclusive interview.
This remarkable achievement attracted a diverse range of investors, including IOSG Ventures, GSR, and GGV Capital, alongside prominent angel investors like Patricio Worthalter, the founder of POAP, Tim Beiko from the Ethereum Foundation, and Anthony Sassano. Taiko, however, has chosen not to disclose its current valuation, keeping the market intrigued.
At the core of Taiko’s mission is the development of a cutting-edge scaling solution for the Ethereum blockchain. The company strives to closely emulate Ethereum’s design and ideology, as expressed in their recent announcement. They refer to their innovative product as a Type 1 zero-knowledge Ethereum Virtual Machine (zkEVM). This approach aligns with Ethereum inventor Vitalik Buterin’s perspective, as he emphasized the significance of Type 1 zkEVMs in making Ethereum’s layer 1 more scalable in a notable blog post.
Taiko Labs’ commitment to preserving the integrity of the Ethereum ecosystem is evident in their design decisions. Matthew Finestone, co-founder of Taiko Labs, explains their dedication to adhering closely to the Ethereum Virtual Machine (EVM) specification and the Ethereum specification itself. Their deep admiration for Ethereum drives their desire to extend its capabilities, as they believe it offers the most advantageous properties for their groundbreaking project.
To showcase their progress, Taiko Labs recently unveiled the latest version of their testnet, which they proudly describe as “the next step on the road to a decentralized, Ethereum-equivalent ZK-EVM.” This significant milestone demonstrates their unwavering commitment to realizing a decentralized future powered by their innovative technology.
From Loopring to Taiko
Wang and Finestone have a strong history of collaboration, having previously worked together at Loopring Foundation, a highly regarded trading and payment protocol leveraging zk-rollup technology. Wang, the visionary founder and CEO of Loopring from July 2017 to November 2021, brought his invaluable expertise to the project, while Finestone made significant contributions as the head of business over a period of three years.
Drawing from his extensive experience, which includes four years at Google, Wang identified a pressing need in the decentralized space. His desire to create a decentralized social network was hindered by the lack of suitable infrastructure and scalability. This realization led to the birth of the groundbreaking project known as Taiko.
Wang’s ambitions for Taiko are both ambitious and focused. He aims to bring blockchain technology closer to enhancing the quality of life for individuals worldwide. However, he maintains a grounded perspective, acknowledging that there is still considerable work to be done before achieving the desired impact on a global scale.
To ensure the successful launch of Taiko’s mainnet, the project has already secured two rounds of financing. However, Wang acknowledges the potential need for additional capital to establish an ecosystem investment fund. This fund will play a pivotal role in attracting dApps and developers to the Taiko ecosystem, fostering a vibrant and thriving community.
Not only does Taiko aim to achieve greatness in its objectives, but it also seeks to emulate the successful organizational structure of Ethereum. Wang plans to swiftly transition Taiko into a non-profit entity, operating in a manner similar to the renowned Ethereum Foundation. This strategic move demonstrates Taiko’s commitment to transparency, community-driven initiatives, and the long-term sustainability of its ecosystem.