Total amount raised
$70.8 Millions
Latest funding date
11/1/2022
Location
Compound has successfully raised funds through multiple investment rounds, attracting a diverse group of 24 investors. The platform operates as an open-source interest rate protocol, unlocking new financial applications in the decentralized finance (DeFi) space.
Keep reading to explore the intricacies of Compound's fundraising journey and the investors backing this innovative platform.
What Is Compound?
Founded in August 2017, Compound is an open-source interest rate protocol based in San Francisco, California. The platform, created by Geoffrey Hayes and Robert Leshner, is designed to unlock new financial applications for developers.
Compound operates on Ethereum, offering a web interface that adjusts money market interest rates based on asset-specific supply and demand. It is a key player in the blockchain, cryptocurrency, and decentralized finance (DeFi) industries.
With a team of 51-100 employees, Compound continues to innovate in the fintech space, integrating with dozens of applications and serving thousands of users.
How Much Funding Has Compound Raised?
- Seed Round
- Amount Raised: $8.2M
- Date: May 2018
- Lead Investors: Andreessen Horowitz, Bain Capital Ventures, Polychain
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop the initial version of the Compound protocol and attract early users.
- Series A
- Amount Raised: $25M
- Date: November 2019
- Lead Investors: Andreessen Horowitz
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand Compound's crypto lending services.
- Venture Round
- Date: January 2020
- Investor Count: 3
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance platform features.
- Debt Financing
- Amount Raised: $37.6M
- Date: November 2022
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support liquidity and operational expenses.
Total Amount Raised: $70.8M. Current Valuation: Not publicly disclosed.
Key Investors
- Andreessen Horowitz
- Details: Andreessen Horowitz is a prominent venture capital firm based in Silicon Valley. It is known for investing in high-growth technology companies.
- Investment Focus Areas: Software, social media, crypto, fintech.
- Notable Investments: Facebook, Twitter, Airbnb, Coinbase.
- Bain Capital Ventures
- Details: Bain Capital Ventures is the venture capital arm of Bain Capital, a global private investment firm. It focuses on early to growth-stage investments.
- Investment Focus Areas: Fintech, healthcare, enterprise software.
- Notable Investments: LinkedIn, DocuSign, Jet.com.
- Polychain
- Details: Polychain is a cryptocurrency investment firm that manages a hedge fund focused on digital assets. It aims to accelerate the global adoption of blockchain technology.
- Investment Focus Areas: Blockchain, cryptocurrency, decentralized finance.
- Notable Investments: Coinbase, MakerDAO, Filecoin.
What's Next for Compound?
As Compound looks to the future, the expansion of its crypto lending services presents a significant opportunity. With the $25 million investment from Andreessen Horowitz, the platform is well-positioned to attract more users and investors in the burgeoning decentralized finance (DeFi) space.
Future fundraising opportunities seem promising, given the increasing interest in DeFi platforms. Compound may continue to draw substantial investments from venture capital firms and institutional investors. However, the company will need to navigate regulatory scrutiny and competition from other DeFi platforms and traditional financial institutions.
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