Alchemy aws 250m series

alchemy aws 250m series

Alchemy’s other offerings each focus on a different aspect of the software development workflow. One service, Build, makes it possible to find software bugs by analyzing patterns in historical blockchain transactions. Another service called Monitor helps developers identify additional types of technical issues, such as an unexpected decrease in the number of processed transactions or a sudden latency spike.

Alongside essentials such as ensuring infrastructure reliability, another common requirement for blockchain applications is the ability to send push notifications. A blockchain-powered financial app, for example, may have a feature that alerts users when a transaction is complete.


Now we have the real internet. We’re still in the baby web3 phase.” Alchemy CTO and co-founder Joe Lau told TechCrunch.

“When you look at the computer, the internet didn’t replace the computer,” he added. “It just added capabilities that weren’t possible before. Web3 isn’t going to replace Web 2 but rather extend the capabilities and experiences of Web 2.””

Despite being profitable and experiencing such rapid growth, Alchemy continues to raise hundreds of millions of dollars to basically ensure it can keep up with the rapid and widespread use and growth of web3, its founders say.

“We want to make sure we’re in a good position to basically help companies and startups as they grow,” Lau said.
“Last year we saw teams who started out on Alchemy become billion-dollar companies and support millions and millions of users all around the world.

We believe we’re just getting started and we want to be able to continue to help and support our customers as they grow.”

While there has been a lot of chatter on Twitter debating web3 versus Web2.0, Viswanathan and Lau believe there doesn’t need to be so much tension between the two.

“In the beginning of any technology, everyone always is trying to figure it out. If you look at the internet in the mid-90s, people said ‘this is so slow, why would anyone use email?’” Lau said.

“But the reality is that technology improves and we’re trying to figure out what this will look like 10 to 15 years from now.”

It’s a fact that thousands of new web3 organizations are being launched and scaling quickly. Meanwhile, hundreds of established Web 2.0 companies arepivotingtheir strategies to include web3 on Alchemy.

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Ethereum users, Alchemy has stated it intends to expand to other blockchains, and is already working with Flow, a chain developed by the NFT company Dapper Labs.

Alchemy’s Series C funding round was led by Andreessen Horowitz, and is one of the crypto-focused venture capital firm’s biggest investments to date in Web 3—a term that describes the still-emerging world of decentralized computer services powered by blockchain technology.

“Alchemy is growing at a staggering pace because it offers developers a platform for building web3 applications that is reliable, scalable, and easy to use,” said Ali Yahya, a general partner at the firm in a statement.

The $250 million investment comes after Alchemy raised previous rounds of $15 million and $80 million, and values the firm at $3.5 billion—a more than six-fold increase from earlier this year.

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The venture firms Lightspeed and Redpoint joined the Series C round as new investors, following earlier backers that include celebrities like Will Smith and Jay-Z.

According to Alchemy, the company has been making enough money that it hasn’t had to touch any of the $80 million it raised in a Series B round earlier this year.

The company’s big profits come in part from the outsize growth it’s enjoyed, including a 15-fold jump in revenue in the last six months. And in August, Alchemy laid the groundwork for further growth through a tie-up with another infrastructure provider, Polygon, that is focused on building DeFi applications.

All of this suggests that the stars have aligned in a remarkable way for Alchemy, and that the company is poised to dominate the niche of blockchain infrastructure.

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Reducing the amount of custom code that blockchain developers must write allows them to build software faster and more cost-efficiently.

One of Alchemy’s main offerings is a service called Supernode. It aims to reduce the amount of work required to manage nodes, important components of blockchain implementations that play a key role in processing transactions.

Nodes are responsible for, among other tasks, storing data about the transactions made through a blockchain.

Alchemy’s Supernode service provides features that help developers ensure the transaction data stored in nodes is correct and up to date. Supernode also simplifies certain other tasks, such as scaling blockchains.

The result is that developers can spend less time building blockchain infrastructure and invest more resources in enhancing their applications.

Some, but not all, are also customers.

“2021 was the year developers took web3 mainstream and created businesses that are transforming the lives of millions,” Viswanathan said. “In 2022, we’ll be doubling down on our commitment to meeting developer needs in more places, making it easier than ever to unlock the potential of web3.”

The company plans to use some of its new capital toward hiring, and expects its headcount to reach about 200 by year’s end. It has thus far focused on high-quality hires. For example, 22 of its 27 employees in October were previously founders themselves, with “multiple people having run multi-hundred person companies.”

Alchemy is just one of several companies as of late that have raised money to power crypto companies.

In January, crypto infrastructure company Fireblocksnearly quadrupled its valuation to $8 billionin six months.

O Egon Durban told TechCrunch via e-mail that his firm believes web3 “represents a major evolution in the Internet.”

“The market opportunity is massive, and as one of the fastest growing companies in technology history, Alchemy is building the infrastructure to power and democratize this transformation, helping bring it to everyone by doing for web3 development what AWS did for the Internet,” Durban added.

In the past three months, Alchemy has also led the launch ofWeb3 University, an open educational resource for anyone looking to build their web3 development skills and createdAlchemy Ventures“to help nascent web3 businesses accelerate their growth.” So far it has allocated $10 million to that venture fund “with more to come.” It has doneseveral investments to date, including backing Royal, crypto exchange FTX (recently valued at $32 billion), Genies, Matter Labs and Arbitrum.

San Francisco-based Alchemy says its sales have grown even faster than its valuation over the past six months. The startup’s revenue is 15 times higher than in April, a milestone it managed to reach while also achieving profitability.
It didn’t specify absolute revenue.

Alchemy’s latest funding round was led by Andreessen Horowitz. The prominent venture capital firm was joined in the investment by Lightspeed and Redpoint, as well as returning backers Coatue, Addition, DFJ and Pantera.

Alchemy describes its mission as “doing for blockchain and Web3 what AWS did for the internet.” The startup has created a set of cloud-based services to simplify many of the most complicated development tasks involved in creating blockchain applications.

To further put that into context, that’s a gain of nearly $1.1 billion in value per month. Not bad for two guys who started the company out of their apartment five years ago.

Existing backer Lightspeed Venture Partners and new investor private equity firm Silver Lake co-led Alchemy’s latest investment, which brings the company’s total raised since its 2017 inception to $545.5 million. Notably, all of the company’s previous investors — which include the likes of Andreessen Horowitz (a16z), Coatue Management, DFJ, Pantera, Lee Fixel’s Addition — also put money in the latest financing.

Alchemy’s goal is to be the starting place for developers considering building a product on top of a blockchain or mainstream blockchain applications.

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