Blockchain startup LightLink raises $6.2m as cryptocurrency VC activity shifts

Ethereum layer-2 blockchain LightLink secured $6.2 million in funding during an extended seed round.

Institutional and individual investors participated in the effort.

“No further rounds planned [at the moment],” the company stated in a social media post on Saturday, April 6.

Due to strong interest, we're having this single VC round to benefit our ecosystem by partnering with the right long-term backers.

No further rounds planned atm.

An LBP on @FjordFoundry is a better way to ensure fair token distribution and build a community around the project. https://t.co/yiS0PwPPDT

— LightLink ⛓️ (@LightLinkChain) April 6, 2024

LightLink extended the seed round due to high demand from investors. The startup ended up receiving an additional $1.7 million in the process. ‘

LIGHTLINK L2 EXTENDS SEED ROUND – RAISES $6.2 MILLION

– @LightLinkChain has just announced the extension of its seed-stage investment round, bringing it to a full $6.2 million.

– Participants include notable VC funds such as @MH_Ventures, as well as industry-leading KOLs like… https://t.co/hH6xytjiL5 pic.twitter.com/xdtTQkDKGY

— BSCN (@BSCNews) April 5, 2024

The company plans to use this influx of capital to support its vision of a web3 ecosystem accessible to millions while advancing proprietary technologies for gasless transactions.

Roy Hui, LightLink’s co-founder and CEO, expressed enthusiasm about the investment, highlighting the company’s commitment to practical blockchain solutions.

Our mission at LightLink is to make blockchain practical and accessible. This investment will help us continue building a Web3 ecosystem for millions of users from our enterprise partners and enhance our proprietary technology for gasless transactions.

Roy Hui, LightLink CEO and co-founder

The extended seed round saw participation from prominent venture capital (VC) firms such as MH Ventures and NxGen, alongside contributions from individual crypto investors like Eric Cryptoman and Satoshi Stacker.

LightLink reportedly records about 115,000 daily transactions and enjoys a strategic alliance with Animoca Brands. 

Additionally, one of its upcoming initiatives is the launch of its LL token, backed by a liquidity bootstrapping pool. The move is designed to ensure equitable distribution and efficient price discovery within the LightLink ecosystem, which facilitates instant, gasless transactions for dapps and enterprises.

The company’s successful seed round comes against a backdrop of renewed VC interest in the crypto space.

According to data gathered by Crypto Koryo, venture capital funding in crypto projects has surged by 38% since Q4 2023. 

🔸 Long-term Trend 🔸

Both total investments and number of investments have increased compared to last quarter.

Compared to last quarter, there was a 38% increase in amount invested and 49% increase in the number of projects invested. pic.twitter.com/QhIcsOB0qw

— Crypto Koryo (@CryptoKoryo) April 4, 2024

Crypto Koryo’s data indicated that the number of crypto projects receiving VC funding also increased by 49%.

Venture firms such as Andreessen Horowitz, OKX Ventures, and Paradigm led major investment rounds in the first quarter of 2024. 

In March alone, crypto VC funds invested over $1.1 billion across 180 crypto startups, with a focus on infrastructure and decentralized finance projects.

This upward momentum in VC funding mirrors the trend seen in the fourth quarter of 2023, which observers say indicates a positive outlook for continued growth and innovation in the crypto space.