Investors Bolster The Graph With $205M Ecosystem Fund

Digital Currency Group, Multicoin Capital, Reciprocal Ventures, gumi Cryptos Capital, NGC Ventures and HashKey provided the capital to accelerate growth on The Graph


Blockworks exclusive art by Axel Rangel


key takeaways

  • The Graph supports indexing data from 31 different networks, including Ethereum layer-2 network and compatible layer-1 blockchains
  • Key projects for the fund include those building creator economies with NFTs and token design, as well as cross-metaverse identities and DAO tools

A group of six investors joined forces to launch a $205 million ecosystem fund for The Graph, an indexing layer for Web3 and blockchain data.

This Ecosystem Fund isn’t an investment in The Graph — it is a fund that will invest in projects building on its protocol, Tegan Kline, co-founder and business lead at Edge & Node, shared with Blockworks.

Digital Currency Group, Multicoin Capital, Reciprocal Ventures, gumi Cryptos Capital, NGC Ventures and HashKey provided the capital to accelerate the growth and development of projects on The Graph. Additionally, the funds will provide support from a “host of areas” and provide guidance for projects, Craig Burel, partner at Reciprocal Ventures, noted to Blockworks. 

“We believe we can identify promising new technologies and critical components in the decentralized stack and leverage our collective networks to accelerate their proliferation across Web3,” Samantha Bohbot, director of platform at Digital Currency Group, said to Blockworks.

Some key projects they’ll invest in include ones that are building creator economies with NFTs and token design as well as cross-metaverse identities and DAO tools, Andrea Zhang, partner at NGC Ventures told Blockworks. 

The Graph uses subgraphs, which are open application programming interfaces (APIs) that use the programming language GraphQL. It supports indexing data from 31 different networks including Ethereum and its layer-2 networks Arbitrum and Optimism, plus Ethereum-compatible Polygon, Avalanche, NEAR protocol, Celo and Fantom.

These subgraphs retrieve blockchain data secured through a decentralized network on DeFi, NFTs (non-fungible tokens) and DAOs (decentralized autonomous organizations), among other things. This means decentralized applications, or dApps, can be permissionless with open APIs instead of relying on single servers.

In 2021, there was tremendous growth for the Web3 developer stack, but there is still work to be done with tooling or “middleware solutions,” Bohbot said.

“We expect [the] metaverse will continue to be the main narrative across the Web3 ecosystem, including GameFi, NFT projects and decentralized metaverse,” Zhang said. “One of the drivers of this trend can be attributed to the rising Web2 metaverse, both in terms of capital attracted and user adoption, which can make more people realize the benefits of decentralized metaverse infrastructure in empowering the creator economy.”

Going forward, The Graph will continue to add support for additional layer-1 and layer-2 blockchains, as well as storage networks to help grow the Web3 ecosystem, Kline said.

The speed and growth of capital and ideas in the crypto industry is unprecedented, causing a constantly shifting narrative, Burel said. Web3 data will be decentralized and The Graph’s network of over 150 validators is helping to drive this seismic shift, he added.

“We continue to be excited about DeFi, Web3 infrastructure, gaming and applications with unique features enabled by Web3 rails,” Burel commented.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

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 […]

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

recent research

Pyth Cover.jpg


Pyth is a low latency pull-based oracle. In a future that looks increasingly high frequency, with various alt L1s and L2s that have significantly shorter block times than Ethereum, and an explosion of “high-frequency” protocols such as oracle or CLOB perp DEXs, Pyth’s low latency oracle product looks much better positioned to capture a significant amount of market share in comparison to competitors.


Binance settlement “an important part of clearing the way for the next bull market cycle,” crypto hedge fund executive says


Hester Peirce reiterated Tuesday that court cases are not the only path to regulatory clarity for crypto, but her colleagues do not always agree


The indictment followed leaks Monday that a Binance settlement deal was forthcoming


The Binance executive is also reportedly set to make an appearance in a Seattle courtroom Tuesday


Monday developments reaffirmed the US as unfriendly to crypto while also offering a potential bullish outlook for segment firms, industry watchers say


It’s unclear what “actions” the CFTC, DOJ and Treasury will announce Tuesday afternoon