Ex-Meta executives raise $300M to ‘accelerate adoption’ of Sui blockchain

Mysten Labs, the company behind the yet-to-be-released layer-1 Sui blockchain, has raised $300 million with the goal of building core infrastructure and accelerating adoption of the Sui blockchain ecosystem.

The blockchain company, which was founded by former executives of social media giant Meta in 2021, said in a Sept. 8 announcement that it has raised $300 million in a Series B funding round led by cryptocurrency exchange venture arm FTX Ventures.

Other Series B investors included Coinbase Ventures, Jump Crypto, Andreessen Horowitz’s a16z, Circle Ventures, Binance Labs and O’Leary Ventures, among other investment funds and partners, with the new capital valuing the company at over $2 billion.

In addition to equity, investors will receive guarantees for native tokens that will be traded on the future blockchain.

Mysten is the creator of the Sui blockchain, a proof-of-stake level 1 blockchain that uses a feature called “transaction parallelization” to achieve high efficiency, low transaction latency, and low transaction fees, which can give existing blockchains such as Ethereum and Solana a run for its money.

Mysten co-founder and CEO Evan Cheng said the new funding will be used to grow its technology, the company’s hiring efforts and expansion in the Asia-Pacific region.

“This new funding will allow Mysten to continue to scale Sui, and we are grateful for the support from blue chip investors and strategic partners who are aligned with our mission.”

Cheng suggested that the current Web3 infrastructure “is in the dial-up era”, noting:

“It’s slow, expensive, limited capacity, unsafe and just plain hard to build.”

The latest funding suggests that some venture capitalists remain indifferent to the cryptocurrency market. A recent report from Messari revealed that $30.3 billion in capital was invested by VC firms in the first six months of this year, surpassing the entire year of fundraising in 2021.

Related: VCs Pour $14.2B into Crypto in 1H 2022, But Investments Now Slowing

Last December, Mysten Labs raised $36 million in Series A funding, led by a16z.

The company was founded in September 2021 by former cryptographic engineers behind the crypto payment platform Diem and the Meta Novi mobile wallet. Mysten Labs is led by CEO Evan Chang, CTO Sam Blackshear, CPO Adeniyi Abiodun and Chief Scientist George Danezis.