Alchemy Secures $80 Million in Series B Funding

Blockchain developer platform Alchemy has announced the successful completion of a $80 million Series B funding round. This investment was spearheaded by Coatue and Addition, Lee Fixel’s recently established fund.

Rapid Growth and Valuation

Previously, the company had secured a total of $15.5 million in funding. Consequently, the latest financing elevates Alchemy’s total funding to $95.5 million since its inception in 2017.

The speed of Alchemy’s ascent is noteworthy. The company transitioned from its initial public launch to a $505 million valuation within a mere eight months.

During this period, Alchemy facilitated over $30 billion in transactions for a user base numbering in the tens of millions worldwide.

Dominance in the NFT Space

Furthermore, the startup reports that it currently powers a significant portion of the NFT industry.

High-Profile Investors

The investor pool for this round is comprised of prominent institutions and individuals. These include DFJ Growth, K5 Global, the Chainsmokers, actor Jared Leto, and the Glazer family – owners of both the Tampa Bay Buccaneers and Manchester United.

Existing investors, such as Yahoo co-founder Jerry Yang, Pantera Capital, Coinbase, SignalFire, Samsung, Stanford University, Google chairman John L. Hennessy, Charles Schwab, and LinkedIn co-founder Reid Hoffman, also participated.

Significant Investor Demand

Sources familiar with Alchemy’s internal operations indicate that the company’s business has expanded more than eightfold since the Series B term sheet was signed.

Reportedly, Alchemy received over $300 million in investor requests to join the round and is currently receiving offers for further financing at valuations considerably higher than its current level.

Vision and Passion of the Founders

TechCrunch’s discussions with Alchemy co-founders Nikil Viswanathan (CEO) and Joe Lau (CTO) revealed a strong commitment to the company’s core mission, alongside evidence of its remarkable growth.

“We recognized that to foster the growth and realize the full potential of this space, a dedicated developer platform for blockchain was essential,” Viswanathan explained to TechCrunch.

A Developer-Focused Platform

Alchemy aims to be the primary platform for developers seeking to build products on blockchain technology or mainstream blockchain applications.

Its developer platform is designed to simplify infrastructure development and enhance applications through essential developer tools.

Wide Range of Applications

The startup supports a diverse range of transactions across various blockchain sectors, including financial institutions, exchanges, decentralized finance projects, and organizations like UNICEF.

It has also become the foundational technology for leading NFT platforms, such as MakersPlace, OpenSea, Nifty Gateway, SuperRare, and CryptoPunks.

“Just as Amazon’s infrastructure is utilized every time you use DoorDash, Alchemy powers every interaction with an NFT,” Lau stated.

Impressive Revenue Growth

While specific revenue figures were not disclosed, the company, operating on a SaaS model, reported a 600% revenue increase in 2020.

Industry Impact

Industry insiders believe Alchemy is instrumental in driving progress within the blockchain sector.

“Alchemy has been a key driver of innovation in the rapidly evolving crypto economy, enabling developers to build the robust application ecosystem needed for widespread blockchain adoption,” commented Emilie Choi, President and COO of Coinbase.

The "AWS of Blockchain"

Paul Veradittakit of Pantera Capital characterizes Alchemy as “the Amazon Web Services (AWS) of the blockchain industry,” facilitating the realization of a decentralized web.

“Similar to how Microsoft, Apple, and AWS are vital to the computer and internet industries as developer platforms, Alchemy is poised to fulfill the same role for blockchain,” he added.

The company acknowledges the validity of the AWS comparison, stating that, “Just as AWS provides the infrastructure powering Uber and Netflix, Alchemy powers the infrastructure for many major blockchain players.”

Future Plans

Alchemy intends to utilize the new funding to expand its developer platform to support additional blockchains, accelerate global expansion, and establish new offices in the U.S. and internationally.

Currently based in San Francisco, the startup plans to open a new office in New York.

“The funds will be allocated to supporting new blockchains with our developer platform,” Viswanathan explained. “We also anticipate expanding the team fivefold this year.”

Lean and Efficient Operations

Despite its rapid growth, Alchemy emphasizes its commitment to maintaining a lean and efficient operational structure.

“We’ve intentionally kept the team relatively small, growing from 14 to 22 employees,” Lau noted.

Growing Investor Interest in Blockchain

The blockchain space has recently experienced a surge in investor interest.

In March, BlockFi, a crypto financial services company, secured $350 million in Series D funding, achieving a $3 billion valuation.

Chainalysis, a blockchain analysis firm, also announced a $100 million Series D financing round last month, doubling its valuation to over $2 billion.