Polygon receives $500m funding injection from Sequoia Capital

Sequoia Capital India has led a $500m investment into the Polygon Network (formerly known by the MATIC ticker).

The huge cash injection comes as leading venture capital firms in the tech sphere jockey to take positions in promising layer-2 solutions and web 3 infrastructure projects.

Tiger Global recently led a $50m investment into The Graph – an increasingly important query protocol for Web 3 indexing, and Andreessen Horowitz (a16z) has been heavily investing seemingly into every promising new project in the space with a dedicated crypto fund.

What will Polygon (MATIC) do with the $500m?

In a discussion about the rationale behind the whopping investment, Sequoia India‘s Managing Director Shailesh Lakhani revealed that Ethereum’s ongoing struggle with scalability had been a big factor in the decision.

“Thousands of developers across a range of applications are choosing Polygon and their complete set of scaling solutions for the Ethereum ecosystem,” he said.

“This is an ambitious and aggressive team, one that values innovation at its core.”

It may also be down to an interest at Sequoia in zero-proof technology (which is being pioneered through Polygon Miden).

Polygon has announced it will use $100m as fuel for the recently established ecosystem fund – which aims to power growth on the network.

The rest will be held in reserve, likely to support the rapidly expanding size of the development team and operations – which now accounts for more than 200 staff – and for deployment in new verticals identified by the network such as GameFi.