Biconomy, a blockchain transaction startup, has raised $9 million in a private funding round led by DACM and Mechanism Capital on July 28, 2021. The startup also received strategic investments from Coinbase, Coinfund, Bain Capital, Huobi Innovation Labs, Primitive Ventures, Genblock and Rarestone Capital.
The funding also witnessed angel investments from Stani from Aave, Hasu, Stephane Gosselin from Flashbots, Prabhakar Reddy from Falcon X, Arbitrum founders and more. The completion of this round of financing includes participation from previous investors, including Woodstock Fund, Eden Block, and Zee Prime Capital.
Funding to be used to propel next-gen technology
Biconomy will use the fund to propel further its multichain transaction infrastructure for Web 3.0 or Semantic Web applications. The concept of Web 3.0 or Semantic web technology has been doing the rounds since 2001. It is the third generation of internet services for websites and applications.
This third-generation internet service will focus on using a machine-based understanding of data to provide a data-driven web service with the ultimate goal of creating more intelligent, connected and open websites. Web3.0 applications face critical roadblocks to user adoption, including complex user onboarding and confusing transaction experiences.
Biconomy aims to facilitate easy access to decentralized blockchain interactions and create seamless multichain experiences by enabling use cases. The startup will reduce the friction between blockchain-based applications and end-users by making crucial technological development.
“The plethora of bottlenecks of Web3.0 transactions, such as gas fees, ETH-only payments, complicated onboarding processes, and fragmented L2s along with a booming multichain ecosystem emerging have created major challenges for blockchain adoption,” said Ahmed Al-Balaghi, CEO of Biconomy.
“If we can solve even a fraction of those challenges, we believe we will be able to onboard the next billion users into the DeFi and broader web3.0 ecosystem,” he added.
It will decentralize its relayer network, including making essential technological developments and expanding its business ventures, emphasizing community growth. Biconomy has dubbed this phase the revolution of Web 3.0 interactions.
Paving way for building better blockchain applications
“Biconomy’s powerful plug and play SDK and APIs enable developers to offer a convenient Web3.0 experience removing many of the friction points users are currently facing,” said Andrew Kang, Managing Partner at Mechanism Capital.
“They are abstracting away blockchain complexities for applications end-users which drastically helps to reduce drop-off rates and increase user retention,” he added.
“By enhancing developer and end-user experiences, Biconomy is paving the way for how blockchain applications are built. The technology they have created will be a core infrastructure for the future of blockchain-enabled digital economies,” said Adan D’Augelli, Partner at True Ventures.
In addition to new funding, Biconomy is also gearing up to launch its native token $BICO. As part of decentralizing their multichain infrastructure, the company has plans to launch a token that will secure the network, enable community governance and incentivize all stakeholders.