Connext Labs, a blockchain protocol aiming to facilitate the development of applications that can access multiple networks, has raised $7.5 million in a funding round led by Polychain Capital, Polygon Ventures, and other investors. This brings the startup’s total funding to $23.2 million and gives it a $250 million valuation, according to an announcement on Wednesday.
Connext is building the HTTP of Web3, creating a communication layer across different blockchain networks so that applications can interact with funds and data on multiple networks simultaneously. This interoperability allows developers to build applications without the risk of their being hindered by congestion or high fees on one particular blockchain, a common issue with Ethereum, the world’s most popular DeFi network.
The new capital will be used to establish the Connext Foundation, which will be responsible for issuing development grants and funding to Connext-built initiatives. Other investors in the company include Coinbase Ventures, Ethereal Ventures, 1kx, #Hashed, and Scalar Capital.