Elastic Blockchain Network Company SKALE Raises $17.1 Million In Funding

By Amit Chowdhry ● October 6, 2019
  • Elastic blockchain network company SKALE recently announced that it raised $17.1 million in funding

SKALE, an elastic blockchain network company founded by Stan Kladko, Ph.D. and Jack O’Holleran, announced it raised $17.1 million in funding in order to launch its mainnet. According to CoinDesk, SKALE pointed out it could be ethereum’s “best shot” in beating other smart contract platforms.

The $17.1 million investment includes a $10 million contribution from SKALE Labs and $7 million in a recent financing. The numbers have not yet been finalized due to ongoing accounting adjustments and asset transfers.

There were 19 investors who participated in the recent financing, including Arrington XRP Capital (Michael Arrington), Blockchange Ventures, ConsenSys Labs, Hashed, HashKey, Multicoin Capital, Recruit Holdings, and Winklevoss Capital (Tyler Winklevoss and Cameron Winklevoss). Including these 19 investors, SKALE now has over 40 investors in total.

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The contribution from SKALE Labs is largely coming from previous financing through a $10 million Simple Agreement for Future Tokens (SAFT) sale, including an $8.68 million funding round led by Multicoin Capital and $785,000 from earlier investors last year.

“Skale has grown tremendously over the past year in almost every aspect,” said Kyle Samani, managing partner of Multicoin Capital, in an interview with CoinDesk.

With this round of funding, SKALE plans to seed and stabilize SKALE’s proof-of-stake network and increase its security as well as add more people to the 20 person engineering team.

Following a token sale last year, SKALE Labs launched a testnet last year and also established the NODE Foundation earlier this year. SKALE said that the network will enable dapps to conduct “millions of transactions per second at a fraction of the cost of what’s possible today.” There are currently 23 different dapps on the platform.