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Ava Labs to raise $350 million at a valuation of $5.25 billion

Updated: Jul 25, 2024
Published: Apr 14, 2022
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The smart contracts company behind Avalanche, Ava Labs, Inc., has revealed its plans on raising $350 million through a funding round at a valuation of $5.25 billion, making it one of the world’s biggest crypto startups. 

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Ava Labs aism to compete with Ethereum and Solana 

Though the funding round has not been made public, the anonymous “people familiar with the discussion” have revealed that Ava Labs is in the process of raising $350 million, as per the report by Bloomberg.

With the new funding round, the company could be aiming to expand its business and maintain its position in the choppy market with several concerns like Fed’s tight stance, Bitcoin’s poor performance, inflation, and Russia-Ukraine dispute, hovering overhead.

Founded in 2018 by Cornell University professor Emin Gun Sirer, Ava Labs aims to increase its speed and lower its transaction fees for applications as much as possible under its efforts to compete with Ethereum and Solana. As per the data by DappRadar, Avalanche, whose token (AVAX) currently has a market capitalization of $21.5 billion, carries around 250 active applications from different spaces ranging from DeFi to gaming.

A streak of funding rounds

In 2020, Ava Labs raised $12 million for one of its initiatives through a private token sale in the presence of Bitmain, Galaxy Digital, and others. Later in 2021, Avalanche public blockchain ecosystem grabbed a massive private funding of $230 million via a token sale, co-led by Three Arrows Capital and Polychain Capital. 

A month back in March 2022, Avalanche Foundation launched a $290 million fund with the goal to support developers in increasing the number of subnets on the blockchain.

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