Connext operates a blockchain interoperability protocol and communication layer that lets developers build interchain applications which can access funds and data across many chains while leveraging existing infrastructure for security. The company says proceeds from its latest raise will enable the setup and operation of the Connext Foundation to steward protocol development, issue development grants, and fund community-led initiatives. The strategic round brings Connext’s total funding to $23.2 million and values the company at $250 million. Operating metrics cited in the article include more than 1.2 million crosschain transactions to date, the addition of over 20,000 new users in the month following its V2 launch in late February 2023, and 35 companies actively building on the protocol, including Metamask, Planet IX, and DODO. Since being formed in 2017, Connext Labs has built foundational blockchain infrastructure, including a 2018 payment-focused Layer-2 scalability system and contributing to the 2019 MolochDAO framework. Connext develops NXTP, a base protocol enabling trustless, low-cost, and extensible communication between EVM-compatible chains and L2 systems. The network runs a set of nodes (routers) that provide liquidity and relay data between chains, earning fees for routing. NXTP emphasizes three advantages: full trustlessness via a lock/unlock mechanism, easy extensibility to new sidechains and L2s, and low capital/gas costs by avoiding unnecessary L1 transactions. Connext has been live with its v1 protocol since February 2021 and launched its interoperability network in January 2021, processing over $500 million in transactions to date and reaching $40 million in weekly volume after rapid early growth. After a recent $12 million ecosystem funding round, the team is focused on growing liquidity, adding support for more chains/L2s, layering additional interoperability protocols, and transitioning the protocol to community ownership.

Total raised

$20M

Funding rounds

2

Latest round

Equity

Latest activity

Jun 2023