German cryptocurrency startup Irreducible, backed by Paradigm and Bain Capital Crypto, has raised US$24 million in a series A fundraising round.
According to reports, a number of angel investors, Fenbushi Capital, L2 Iterative Ventures, and Robot Ventures also took part in the fund raise.
Irreducible was founded in 2022 and is developing infrastructure to increase the effectiveness of ZKPs, a cryptographic technique that enables one party to validate a statement without disclosing any underlying information.
Irreducible’s Fund Raise Had Started in Last Year
Reports also stated that the company concluded the round last month after starting fundraising in August of last year and obtaining co-lead investors in September.
The most recent Series A investment round was structured as stock, similar to its $15 million seed round that was reported in early 2023, according to Cojbasic.
After its seed round, which was disclosed two years ago and raised almost three years ago, Irreducible was valued at $55 million.
Originally founded as Ulvetanna in 2022, Irreducible focuses on zero-knowledge proof (ZKP) generating infrastructure with the goal of increasing cost-effectiveness and efficiency.
What Will The Funding Be Used For?
Irreducible’s goal of constructing the fundamental framework of the verifiable Internet is furthered by this funding. Irreducible has created a ZKP system called Binius that uses “binary field towers” instead of the more conventional “prime fields” to increase efficiency.
Irreducible distinguishes itself from rivals that rely on general-purpose cloud computing by managing its proof generating systems in-house in data centers.
Irreducible, which currently employs 25 people, intends to treble its engineering staff within the next two to three years.
Irreducible’s Funding Comes Amid Broader Rise in Funding For Crypto Sphere
Irreducible’s funding round comes at a time when the broader crypto market has seen a roubound in funding.
With blockchain initiatives, exchanges, and DeFi platforms being backed by venture capital (VC) firms, institutional investors, and private equity, funding in the cryptocurrency space has grown rapidly.
In 2021 alone, billions of dollars were invested in the worldwide cryptocurrency market. The market is becoming more legitimate because to institutional interest fueled by bigger players like hedge funds and conventional financial firms.
Security Token Offerings (STOs) and Initial Coin Offerings (ICOs) are also still common ways to finance new development. The money inflow shows the increasing trust in cryptocurrencies, despite legal obstacles, and indicates that the industry is solidifying as a component of the global financial system.
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