The Ethereum scaling solution, Layer N, has secured $5 million in a recent seed investment round. Leading the funding was Founders Fund, associated with PayPal co-founder Peter Thiel, in conjunction with the investment group dao5.
Unveiled by Layer N this past Wednesday, the investment round attracted significant attention from prominent crypto investment entities such as Kraken Ventures, Mirana Ventures, GSR, and Amber Group.
In a statement released on X, the Layer N team expressed their enthusiasm, stating, “We’re thrilled to share the news of our $5M seed financing, championed by @foundersfund and @daofive, and supported by other distinguished investors and individuals.” They emphasized that this marks the commencement of their journey to “establish Ethereum’s paramount financial layer.”
‘Ethereum’s financial layer’
On platform X, Layer N introduces itself as the “financial layer of Ethereum,” boasting reduced fees and enhanced transaction speeds.
The discussion on X further characterizes Layer N as “Ethereum’s premier layer 2 network tailor-made to amplify DeFi.” The objective of Layer N is clear: to compete head-to-head with established conventional financial systems.
Historically, Ethereum’s foundational layer has grappled with inflated fees and lagging transaction velocities. This has encouraged developers to architect additional layers atop Ethereum, aiming to optimize it for decentralized finance (DeFi) solutions.
Founders Fund’s increasing crypto focus
Founders Fund, led by Peter Thiel, contributed $1.8 million to the overall funds amassed during Layer N’s financing round, as verified by the project’s team in a discussion with The Block.
This investment move followed the fund’s recent onboarding in April of Joey Krug, previously Pantera Capital’s co-chief investment officer, as a partner.
Peter Thiel, a long-time advocate for Bitcoin (BTC) and the wider crypto sphere, is rumored to have encountered Satoshi Nakamoto in Aguilla over two decades ago.
Earlier this year, Thiel’s fund attracted significant attention when it was revealed they secured over $1 billion in profits by liquidating the lion’s share of their cryptocurrency assets just before a market downturn.