Ava Labs, the firm behind the Avalanche blockchain, is said to be in the midst of obtaining more funds. Ava Labs, the Avalanche blockchain's principal developer, is looking to raise $350 million in investment. According to a Bloomberg article citing people familiar with the situation, the latest round will value the New York-based business at $5.25 billion.
Those persons spoke on the condition of anonymity since the financing was not made public, with one source confirming the valuation. If verified, the fundraising will propel Ava Labs into the coveted unicorn club, making it a more valuable cryptocurrency company than Binance's US affiliate, which received $200 million at a valuation of $4.5 billion earlier this month.
According to Crunchbase, Ava Labs has raised a total of $290 million in investment over seven rounds. The company's most recent funding round occurred in September 2021, when Polychain Capital and Three Arrows Capital launched a private token sale that raised $230 million.
The AVAX token, which underpins the Avalanche blockchain, reacted warmly to the news, rising 5% to an intraday high of $81.74 earlier on Thursday.
Despite a little reversal since then, AVAX is still up roughly 4% on the day, trading at $79.59 at the time of writing, according to CoinMarketCap. However, it is still down over 5% for the week, owing to the overall crypto market downturn.
AVAX is the industry's tenth largest cryptocurrency by market capitalization, valued at nearly $21.4 billion.
Taking aim at the opposition
Emin Gün Sirer, a Cornell University professor, co-founded Ava Labs in 2018 with the goal of making Avalanche a blockchain of choice for decentralized app (dapp) developers, competing with Ethereum and Solana on speed and transaction costs.
Avalanche supports roughly 250 active apps, according to statistics from DappRadar, ranging from decentralized finance (DeFi) to games. According to DefiLlama, Avalanche is the fourth-largest blockchain in terms of total value locked (TVL), behind Ethereum, Terra, and the BNB Chain, with approximately $10.6 billion protected across the DeFi universe.
The network has witnessed several significant advances in recent weeks that might help it flourish. The Avalanche Foundation announced a $290 million fund last month to assist developers in expanding the number of subnets—validators that let others to create their own Layer 1 or Layer 2 blockchains.
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