Crypto Funding: Wallet Provider Magic Labs Takes the Cake in $126M Week
PayPal Ventures, the VC arm of PayPal, was the lead investor for Magic Labs
Deacons docs/Shutterstock modified by Blockworks
Around nine crypto startups raised approximately $126 million this week, though one company clearly stood out.
Wallet-as-a-service provider Magic Labs snagged $52 million in a strategic round led by PayPal Ventures. Other investors included Cherubic, Synchrony, KX, Northzone and Volt Capital, according to a press release.
With the latest round, the San Francisco-based firm has raised over $80 million and was bumped up to a valuation of just under $500 million, Fortune reported.
Magic Labs’ business model can be summed up in a few words. Software development kits, of SDKs. Magic Labs gives their wallet SDKs to their clients, many of which are Fortune 500 companies. The clients then customize their crypto wallet to their liking and offer it to their customers via their app.
The retail giant Macy’s is one of Magic Labs’ biggest clients. Hot Wheels toy manufacturer Mattel, which launched a peer-to-peer NFT marketplace for its virtual collectibles in April, also uses Magic as its wallet as a service provider.
Alan Du, a partner at PayPal Ventures, said Magic is a “safe and simple solution” to facilitate mass adoption of Web3.
“Magic’s wallet creation service allows companies to reach millions of users on their apps and onboard customers who are new to [Web3],” Du said in a statement.
So far, Magic has generated over 20 million unique wallets, per a company release.
Multimillion-dollar fundraises in blockchain tech and digital payments
The Anoma Foundation brought in $25 million this week with crypto-focused venture capital firm CMCC Global at the helm.
The Anoma Foundation oversees Anoma, a blockchain protocol dedicated to helping developers build decentralized projects, including decentralized exchanges (DEXs) and decentralized apps (dapps).
This is the foundation’s third time raising venture money, and the capital will go toward ongoing research and development initiatives, helping developers build apps and cultivating partnerships, according to a press release from the foundation.
In the digital payments realm, fiat-crypto ramp provider Transak raised $20 million from over a dozen prominent investors, including Animoca Brands and Axelar.
Transak’s solution is supported by over 150 countries and more than 160 cryptocurrencies, according to a company statement.
Other notable fundraises
- NFT platform Tabi, formerly known as Treasureland, netted $10 million in an angel round with Animoca Brands leading and Binance Labs participating.
- Fusionist, a Web3 gaming firm, raised $6.6 million to accelerate game development and hire more experts in the field to join their team. Binance Labs was a strategic investor.
- Privacy-focused Demox Labs raised $4.5 million to build a new wallet for zero-knowledge proof blockchain Aleo, Axios reported. Aleo is still in beta and plans to have a mainnet launch in July.
Don’t miss the next big story – join our free daily newsletter.