DeFi lending platform Compound raised $25 million in Sequence A funding on November 15, 2019, led by Andreessen Horowitz – one of many largest ever DeFi startup raises on the time.
Andreessen Horowitz, also referred to as a16z, highlighted that that they had been working with the Compound workforce for 2 years and had a robust perception of their aptitude within the subject.
Based on Compound co-founder Robert Leshner, Polychain Capital, Paradigm Capital and Bain Capital Ventures additionally participated within the spherical, valuing the protocol at round $90 million.
On the time of the funding, Compound had somewhat over $100 million in complete worth locked (TVL) in its protocol.
Funding Decentralization and Accessibility
Leshner claimed that the funding spherical would help with the protocol’s plans to decentralize, along with placing the platform inside the attain of the typical particular person – not simply tech-savvy customers.
To be able to obtain this, he promised the protocol can be built-in into a wide range of exchanges, custodians and wallets by the top of 2020.
The place is Compound Finance Now?
For the reason that funding spherical, Compound has efficiently surpassed expectations on all fronts.
The protocol turned one of many very first tasks to decentralize management throughout the palms of the group, by way of the launch and distribution of its COMP governance token.
Compound additionally secured partnerships with well-liked exchanges and wallets together with Binance, Crypto.com, and Exodus. On the institutional finish, it has been built-in into institutional platforms resembling Coinbase Custody, Anchorage and BitGo.
Customers of those platforms can now instantly entry the Compound protocol by way of these companions, fairly than having to withdraw their funds and use a separate pockets.
The protocol peaked with a formidable $12.3 billion in TVL in November 2021 and is at the moment sitting at $2.12 billion TVL, on the time of writing.
It spans 6 totally different blockchain networks: Arbitrum, Base, Ethereum, Optimism, Polygon, and Scroll.
About Andreessen Horowitz (a16z)
Andreessen Horowitz, also referred to as a16z, is a outstanding personal enterprise capital agency based in 2009 by Marc Andreessen and Ben Horowitz.
Headquartered in Menlo Park, California, a16z manages property totaling $42 billion as of Might 2024, making it one of many main corporations in its subject.
It helps each early-stage startups and established firms, offering not solely monetary backing but in addition strategic steering and sources.
Notable investments embrace firms like Fb, Twitter, Airbnb, and Coinbase.
Alex Miguel
Alex is a author and DeFi fanatic who has been within the area since 2016. He has written whitepapers, press releases, and social media content material for a number of tasks within the area.