Andreessen Horowitz Joins $111M Investment in Blockchain-Powered 5G Network Helium

In less than two years since the network’s launch, the Helium community has deployed more than 112,000 hotspots across 112 countries to expand its decentralized 5G network.

article-image

Amir Haleem, Helium CEO

share

key takeaways

  • The hotspots mine HNT, the native network token, and provide an incentive for hosts, or consumers who operate the hotspots, to expand the network’s wireless coverage
  • There are more than 500,000 additional hotspots currently back-ordered waiting to come online

Andreessen Horowitz (a16z), Ribbit Capital, 10T Holdings, Alameda Research and Multicoin Capital have invested $111 million into peer-to-peer 5G wireless network provider Helium Network to help the company scale its decentralized 5G network, the company said in a statement Tuesday. 

Napster Founder Shawn Fanning and former video game entrepreneur Amir Haleem founded Helium in 2013.

Today, it operates in more than 11,000 cities globally after launching less than 24 months ago, said Ali Yahya, general partner at a16z.

How Helium works

Unlike traditional cellular networks like Verizon or AT&T, the Helium network uses different standards like hotspots, which are about the size of a router, to create a decentralized network. The routers are wireless devices powered by the Helium blockchain and provide range and accessibility instead of having cell towers, which are commonly used by major cellular operators.

A Helium hotspot router
A Helium hotspot router; Source: Helium

The hotspots mine HNT, the native network token, and provide an incentive for hosts, or consumers who operate the hotspots, to expand the network’s wireless coverage.

Hosts are rewarded with the HNT tokens whenever it provides Helium’s 5G network coverage and transfers device data. By incentivizing hosts, the company has seen a massive deployment of hotspots since inception. 

In less than two years since the network’s launch, the Helium community has deployed more than 112,000 hotspots across 112 countries. Helium activates an additional 1,000 units every day, and has a backlog of 500,000 additional hotspots waiting to come online, according to the company.

Helium’s backers

Helium is also backed by its co-founder Fanning, GV (formerly Google Ventures), Khosla Ventures, Union Square Ventures, FirstMark, Marc Benioff and other venture capital firms.

The new funding will accelerate the rollout of its 5G network, support mobile network operators and mobile virtual network operators as it leverages expansion of the company’s coverage. 

“The investment we are seeing is a testament to our belief that an incentive-based model is the future,” Haleem said in a statement. “Helium’s decentralized network empowers individuals to create a blanket of connectivity while also owning a piece of it rather than continuing with the status quo.”

“Helium shows that crypto incentives can be leveraged to deploy real-world infrastructure. Helium has a tremendous opportunity to bring 5G to the masses around the world and greatly enrich the quality of their lives,” said Sam Bankman-Fried, founder of Alameda Research and CEO of the crypto exchange FTX.

Want more investor-focused content on digital assets? Join us September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket. Buy it now.

Tags

Upcoming Events

HYATT REGENCY SALT LAKE CITY

TUES, OCT. 8, 2024

Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

hivemapper.jpeg

Research

We believe crypto market participants overlook Hivemapper’s fundamental potential due to a poor understanding of both the niche map data market and Hivemapper’s positioning relative to incumbents. Hivemapper’s token model catalyzes both a cost and product advantage via unmatched map freshness and near real-time accuracy, which is its wedge into a market characterized by stale data and high data collection costs. Its current and potential future product suite may represent one of the strongest possibilities for PMF in crypto today.

article-image

👨‍⚖️ SBF’s courtroom sequel: Plus, Coinbase’s legal loss was DeFi’s gain

article-image

Public mining companies have been acquiring sites, refreshing machine fleets and diversifying business models in preparation for the event

article-image

Exploit shows centralization can sometimes be an asset

article-image

The Fidelity Ethereum Fund, like other proposed ETH ETFs, seeks to stake a portion of its assets, according to the firm’s Wednesday registration statement

article-image

The DAO first voted on enabling SAFE transfers over a year ago