Goldman Sachs invests in blockchain tech startup Blockdaemon to help institutions quickly and securely scale blockchain infrastructure
It’s about three years since we last wrote about Blockdaemon, a New York City-based tech startup that facilitates and manages the deployment of nodes and payment rails for blockchain networks. At the time, Blockdaemon partnered with Citizens Reserve to help the startup quickly deploy nodes using tools developed by Blockdaemon. The company has grown exponentially since our last story. Blockdaemon now powers 25 million registered users across the platforms they support.
Today, Blockdaemon announced that it has closed $28 million in its Series A funding round, led by Greenspring Associates, with participation from Goldman Sachs, BlockFi, and others. Existing seed round investors Boldstart Ventures, Coinfund, Kenetic, CoinShares, Borderless Capital, Blockchain.com Ventures, Lerer Hippeau, and Heavybit also increased their investments. The funding round also adds capital to the explosive growth Blockdaemon has experienced over the past year as they have deployed more than 10,000 nodes across 40 blockchain networks and 20 global regions.
Founded in 2017 by CEO Konstantin Richter, Blockdaemon is an independent blockchain node infrastructure to stake, scale, and deploy nodes with institutional-grade security and monitoring. Currently Supporting 40+ cutting edge blockchain networks including ETH 2.0, Bitcoin, Cardano, Polkadot, Cosmos, SKALE, MobileCoin, and the Lightning Network in the cloud and on-premise through its Blockdaemon Marketplace, Blockdaemon is used by exchanges, custodians, crypto platforms, financial institutions, and developers to connect commercial stakeholders to blockchains.
The company powers the blockchain economy by simplifying the process of deploying nodes and creating scalable enterprise blockchain solutions via APIs, high availability clusters, auto-decentralization and auto-healing of nodes.
Commenting on the funding, Richter said, “This funding represents a significant milestone for Blockdaemon. With investment from industry-leading financial technology providers and VC firms, this round will enable us to further expand our node infrastructure services, add to our growing team, and strengthen our presence in emerging markets across the globe while deepening our existing strategic relationships with global financial institutions.
As the gateway to the blockchain industry for financial institutions of all sizes, Blockdaemon simplifies the complicated, time-consuming, and costly node management process by providing enterprises with the best-fit node configurations that allow them to rapidly scale up operations.”
Over the past 12 months, Blockdaemon has increased its headcount and also deepened its executive talent with the appointment of Cecily Mak as Chief Operating Officer and Demetrios Skalkotos as Global Senior Vice President of Sales. The startup also plans to expand global headcount further following this round. Blockdaemon has averaged more than $5 billion in staked assets and is on track to have upwards of $50 billion by year-end.
“Blockdaemon has demonstrated that enterprises need a simple way to build secure blockchain infrastructure,” said Hunter Somerville, General Partner of Greenspring Associates. “Konstantin and the Blockdaemon team have done a phenomenal job of making the entry point to blockchain easy and secure, and we look forward to working with them on their next stage of growth.”