Gitcoin Spins Out of ConsenSys After Raising Over $11M in a ‘Strategic’ Capital Move
Gitcoin, a decentralized funding program supporting open-sourced blockchain projects, has grown its Treasuries by $11.3 million, a blog post confirmed on Wednesday. The funding was led by Paradigm, with top crypto firms such as IDEO, 1kx, Electric Capital, The LAO, and MetaCartel Ventures also joining the round. Other individual investors included Andreessen Horowitz's board partner, Balaji Srinivasan, and Naval Ravikant, co-founder of AngelList.
The additional funding aims to increase the firm's capital during tougher crypto market times and assist the company spin-out from its parent company, ConsenSys.
“It was time for us to go and see if this bird can fly and if we can do this on our own and manage our own balance sheet accordingly,” Gitcoin COO Kyle Weiss said.
Launched in 2017, the firm has helped several companies get off the ground, including Uniswap (UNI), Defiant (a crypto-focused publication), and the Ethereum 2.0 testnet, Prysm. The program has released nearly $20 million in grants to connect crypto and Web3 startups with open-source developers.
Weiss said the extra funding would enhance the “general development of the space” to decentralize the internet while helping open source developers in funding, especially in times of crisis.
“We want Gitcoin and Gitcoin Grants to have staying power, so now is the time to make sure there’s enough money in the treasury to last the next four to 10 years, potentially through at least another bear market” Weiss said.
Gitcoin rolled out four grant programs in 2020 to over 20 projects after $975,000 in grants across 2019.