Offchain Labs, the company behind layer two scaling solution Arbitrum One, has raised $120 million in Series B funding led by Lightspeed Venture Partners.
What Happened: In a press release on Tuesday, the company said its latest funding round valued the company at $1.2 billion. High-profile investors like Mark Cuban, Polychain Capital, Ribbit Capital, Redpoint Ventures, Pantera Capital, and Alameda Research also participated in the round.
The new round of funding will go towards building enhanced scaling solutions for Ethereum (CRYPTO: ETH).
"We are excited to partner with our investors who understand the importance of scaling Ethereum and bringing the Ethereum ecosystem to the masses," said Steven Goldfeder, co-founder and CEO of Offchain Labs.
"The tremendous support we've seen from developers across the globe validates our mission to be the first to marry the world of FinTech and Defi."
Why It Matters: A beta version of Arbitrum One for developers was launched in May. The platform allows Ethereum users to transact with very low fees and has had over 350 projects sign up for access so far.
In fact, Arbitrum was the scaling solution that popular social media platform Reddit opted for to scale its Ethereum-based Community Points system.
“Arbitrum supports the same Solidity smart contracts and the same toolchain as Ethereum. Developers can launch apps on top of Community Points on this network as easily as they can on Ethereum,” said a Reddit administrator at the time.