Blockchain Scaling Project Sovereign Labs Raises $7.4M in Seed Round
The fundraise was led by Haun Ventures and included Maven 11, 1KX, Robot Ventures and Plaintext Capital.
Sovereign Labs, a crypto project focused on building rollups, has raised $7.4 million in seed funding.
The round was led by Haun Ventures with participation from Maven 11, 1KX, Robot Ventures and Plaintext Capital. The fundraise puts the company’s valuation in the “eight-figure” range, according to a spokesperson for the project. Sovereign Labs declined to disclose its exact valuation.
Sovereign Labs is building a software development kit (SDK) that makes it easier for developers to create interoperable zero-knowledge rollups. A rollup is a special type of blockchain that derives some of its security from another blockchain, thereby allowing for scalability without sacrificing security.
The new Sovereign SDK is designed to be interoperable, scalable and able to be seamlessly deployed on any layer 1 blockchain.
“We’re actually completely agnostic on the blockchain our rollup rolls on,” said Cem Ozer, co-founder and CEO of Sovereign Labs, who added that rollups built with the Sovereign SDK will be compatible with any layer 1 blockchain.
Rollups powered by zero-knowledge, or zk, proofs use a type of cryptography that can prove the validity of a statement without the need to reveal the underlying information. Recently, the buzzy sector has also been attracting ample venture funding, as well as serving as a core component for existing crypto projects like zkSync, Starknet, Zcash and Mina.
“Building with zero-knowledge has historically been accessible only to a few PhDs in cryptography,” said Preston Evans, the company’s co-founder and chief technology officer, in a statement. “At Sovereign Labs we’re building tools which are accessible to normal developers.”
Ozer and Evans added that Sovereign Labs did not have plans to launch a token, adding they are “100% focused” on building out the SDK framework.
“From our perspective, the other systems (like subnets or bridges) all lose the core trait of blockchains, which is end-user verification,” said Ozer. “If we lose that, we might as well have built these systems on [Amazon Web Services].”
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.