Wormhole, the pioneering messaging protocol startup, has successfully secured an impressive $225 million in funding, achieving a remarkable $2.5 billion valuation. This funding round stands out as the largest in the Web3 space this year, underlining the strong confidence and support from key players in the industry.
Notably, the funding round was not led by a single investor but featured prominent participants such as Coinbase Ventures, Jump Trading, Multicoin Capital, and Arrington XRP Capital. Each investor’s stake will be represented by token warrants for a groundbreaking cryptocurrency that is yet to be revealed, as reported by Fortune.
In addition to this significant milestone, the Wormhole team has unveiled the establishment of Wormhole Labs, an independent company with a distinct focus on developing products, tools, and reference implementations. This strategic move is poised to catalyze the growth of cross-chain development.
Saeed Badreg, Co-founder and CEO of Wormhole Labs, expressed his enthusiasm, stating, “Nearly three years ago, Wormhole was launched with the vision of a world resembling the one we see today.” He further emphasized the team’s commitment to this vision through the introduction of Wormhole Labs, a dedicated entity aimed at advancing the technology essential for efficient blockchain-to-blockchain communication.
A brief history
Earlier this month, Bloomberg disclosed Jump Trading’s decision to part ways with Wormhole, a constituent of its digital-asset unit, Jump Crypto.
Jump Trading had made a significant investment of approximately $320 million in the crypto project nearly two years ago, following a substantial hack. However, the firm has recently shifted its focus away from the crypto sector.
This funding round stands out for its considerable size, especially in light of the sluggish funding environment within the Web3 sector this year. Many investors have withdrawn from the space due to the overall deceleration in the venture market and the impact of various scandals and regulations on the crypto industry.
In the preceding year, the Web3 ecosystem witnessed a robust investment of nearly $26 billion in VC-backed startups. However, this year has seen a marked decline, with global startups in the space raising less than $6.5 billion, according to Crunchbase data.