Uniswap Labs—the company behind the Uniswap Protocol exchange— landed a $165 million Series B led by Polychain Capital.
The raise values the company at $1.66 billion, TechCrunch reported.
Others that participated in the round include a16z crypto, Paradigm, SV Angel and Variant.
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Founded in 2018, Uniswap is a decentralized exchange platform operating on the Ethereum blockchain. In a blog post announcing the round, the company said it has now supported $1.2 trillion in trading volume to date.
The exchange allows users to deposit tokens into larger liquidity pools and buy and sell at predetermined pricing.
The protocol’s token—Uni—has a market cap of more than $4.5 billion.
Uniswap plans to use the new funding to invest more into its developer tools, moving into mobile and even launching NFTs.
The company also announced it will further support the growing ecosystem around its protocol. To that effort, Uniswap said its governance community recently voted to create the Uniswap Foundation, which will contribute to the protocol’s development and give at least $60 million in grants to community projects.
Overall Web3 funding still remains down from last year—although it’s important to remember that also is true of most industries.
According to Crunchbase numbers, VC-backed Web3 builders, crypto startups and blockchain developers raised more than $30 billion last year. Thus far this year, that number is still under $18 billion.
However, as the Uniswap raise illustrates, there is still significant appetite in the sector. After a slow summer, September funding in the sector picked up.
The Uniswap raise is the fourth largest since the third quarter began, behind only Palo Alto, California-based Mysten Labs’ $300 million Series B, Aptos Labs’ $150 million Series A and Santa Monica, California-based sports metaverse company LootMogul’s $200 million investment commitment from Gem.
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Illustration: Dom Guzman
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