Former Meta execs raise $300M to ‘accelerate adoption’ of Sui blockchain

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Mysten Labs, the company behind the yet-to-launch layer-1 blockchain Sui has raised $300 million aimed at building core infrastructure and accelerating the adoption of its 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 landed $300 million in a Series B funding round led by crypto 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 warrants for native tokens to be traded on the future blockchain.

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

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

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

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

“It’s slow, expensive, capacity constrained, insecure, and simply hard to build for.”

The latest funding suggests that some venture capital investors remain unphased by the crypto bear market. A recent report from Messari revealed that $30.3 billion in funds was invested by VC firms in the first six months of this year, outpacing the entire fundraising year in 2021.

Related: VCs pour $14.2B into crypto in H1 2022, but investments now slowing

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

The company was founded in Sept. 2021 by former cryptographical program engineers behind Meta’s crypto-payments platform Diem and mobile wallet Novi. Mysten Labs is led by CEO Evan Chang, CTO Sam Blackshear, CPO Adeniyi Abiodun, and chief scientist George Danezis.