Apollo completes its $5B acquisition of Verizon Media, now known as Yahoo

Private equity firm Apollo Global Management this morning announced that it has completed its acquisition of Yahoo (formerly known as Verizon Media Group, itself formerly known as Oath) from Verizon. The deal is worth $5 billion, with $4.25 billion in cash, plus preferred interests of $750 million. Verizon will be retaining 10% of the newly rebranded company.

“This is a new era for Yahoo,” Yahoo CEO (and former VZM head) Guru Gowrappan said in a release tied to the news. “The close of the deal heralds an exciting time of renewed opportunity for us as a standalone entity. We anticipate that the coming months and years will bring fresh growth and innovation for Yahoo as a business and a brand, and we look forward to creating that future with our new partners.”

There have been reports that Gowrappan might not stay on as CEO of Yahoo for the long term now that the deal has closed; for now he’s still at the helm.

In addition to its titular Yahoo properties (Mail, Sports, Finance, et al.), the group includes us, TechCrunch; AOL; Engadget and interactive media brand, RYOT. All told, the umbrella brand encompasses around 900 million monthly active users globally and is currently the third-largest internet property, per Apollo’s figures.

 

The deal puts to a close a years-long effort by Verizon to make a comprehensive move into online media, specifically around adtech, which ultimately proved to be too costly, mostly unprofitable, and finally not core enough to the telco’s bigger growth strategy.

The news comes during a tumultuous time for online media, amid increasing industry-wide consolidation, many felt within Verizon Media. Verizon acquired AOL in 2015 for $4.4 billion, followed by buying Yahoo for $4.5 billion two years later, combining the two legacy media properties into a combined group named Oath. At the end of 2018, Oath wrote down $4.6 billion, following the merger.

It’s not clear how a new owner will steer that large ship differently, but one strategy — standard practice for PE firms — could involve Apollo selling off parts of the business or rationalizing it in other ways.

However, for its part, Apollo has promised to continue investing in the newly acquired proprieties, and it has secured all jobs at the time of handover for at least an initial period. The bigger firm of Apollo has a massive set of TMT holdings so it will be interesting to see how and if it leverages that, too.

“We look forward to partnering with Yahoo’s talented employee base to build on the company’s strong momentum and position the new Yahoo for long-term success as a standalone consumer internet and digital media leader,” Apollo Partner Reed Rayman said in the release. “We couldn’t be more excited about this next chapter for Yahoo as we look to invest in growth across the business, including accelerating its customer-first offerings and commerce capabilities, expanding its reach and enhancing the daily user experience.”

Creators can now monetize their expertise on Quora

In May, Yahoo! Answers shut down after helping the internet answer its most burning questions since 2005. But now, Quora, which began as a question-and-answer site but expanded to incorporate blogging, is making its platform more appealing to creators.

Quora says it’s “on track to be cash flow positive from ads alone,” implying that the platform isn’t currently in the black. But Quora sees tapping into the creator economy and subscriptions as a way to turn a profit.

“We want to make sharing knowledge more financially sustainable for creators,” Quora CEO Adam D’Angelo wrote in a blog post. “Even though many people are motivated and able to spend their time writing on Quora just to share their knowledge, many others could share much more with financial justification to do so.”

Quora’s first new product is Quora+ — subscribers will pay a $5 monthly fee or a $50 yearly fee to access content that any creator chooses to put behind a paywall. These are the same rates that Medium, which has no ads, charges for its membership program.

Rather than paying select creators, subscribers will pay Quora. Then, each subscriber’s payment will be distributed to creators “in proportion to the amount each subscriber is consuming their content, with more of a subscriber’s contribution going to writers and spaces the subscriber follows.” Creators have the option to enable a dynamic paywall on Quora+ content, which would give free users access to certain posts if Quora thinks they’re likely to convert to paid membership; there’s also an “adaptive” paywall option, which uses an algorithm to decide whether to paywall content for a specific user on a case-by-case basis. This is supposed to help creators strike a balance between monetizing their content and growing their audience to find new potential subscribers.

Quora told TechCrunch that it is still experimenting with Quora+ and can’t yet say what percentage it will take from subscriptions.

The other option is for creators to write paywalled posts on Spaces, which are like user-created publications on Quora. Quora will take 5% of the subscription fee, which the creator can choose at their own discretion — comparatively, the direct-to-consumer blogging platform Substack takes 10% of writers’ profits, which makes Quora a competitive alternative. Other platforms like Ghost ask for a $9 monthly fee, but let writers retain their revenue — for writers making at least $180 per month, Ghost would be more profitable than Quora.

“We’re able to sustainably commit to taking only a minimal fee without needing to increase it in the future because we make enough revenue from ads to fund most of the platform’s development and operations,” D’Angelo wrote. Substack, meanwhile, doesn’t have ads.

Quora reached a $1.8 billion valuation in 2017 after raising $85 million, and at the time, the platform had 190 million monthly users. Now, according to D’Angelo’s blog post, over 300 million people use Quora each month. Despite this user growth, Quora laid off an undisclosed amount of staff in its Bay Area and New York City offices in January 2020.

Space subscriptions will launch today for English language users in 25 countries, including the U.S. The rollout of Quora+ will be less immediate as Quora invites select writers to test the platform and determine what works best for subscribers and creators.

Robinhood is now a stonk

Update: Trading of Robinhood shares has been halted due to volatility. The company’s stock paused at $65.60 on Robinhood itself. Yahoo Finance has a higher $77.03 price on the company’s equity, up a stunning 64.59% today. Things are fluid, but Robinhood may have been halted and then rose again when it resumed trading. Stonks indeed.

Shares of Robinhood, an investing-focused consumer fintech company, soared this morning in pre-market trading. The stonk phenomenon, which helped propel minor companies like GameStop and AMC earlier this year, appears to be impacting Robinhood’s own stock; that much GameStop and AMC trading took place on Robinhood’s platform during stonk-fever is irony not lost on this publication.

Here’s what things look like this morning, per Yahoo Finance:

Recall that Robinhood went public at $38 per share, the low end of its range, and sank in its early trading sessions to below its IPO price. Now, it’s worth $54 per share.

Cool.

Normally we’d crack a joke and close this small news item here, but with Robinhood’s IPO featuring a unique twist on the traditional public offering, we have to do a bit more work. When it went public, Robinhood reserved a chunk of its equity for purchase by its own users. The impact of this was that more retail investors likely owned Robinhood equity at the start of its trading life than would be normal with a traditional IPO.

One hypothesis regarding Robinhood’s somewhat slack early trading performance was that early retail demand for its shares was sated by its effort to allow its users to buy stock in its shares, leading to a less-skewed supply/demand curve when it debuted.

Things have changed. What’s going on? Last week, an analyst put a $65 per share price target on the stock. And there are a handful of other ratings to chew on. But the wild swing in the price of Robinhood today appears from our vantage point to be another stonk moment. The stock is being traded like a short-squeeze, even if some market participants are skeptical of the idea due to what they view as a limited short interest in the company.

Checking the Robinhood IR page, there’s no news. Robinhood did not recently report earnings. And the company’s recent 606 filings that deal with PFOF incomes seemed to match up with expectations in revenue terms regarding what the company detailed in its Q2 2021 flash numbers. Perhaps there was more crypto in there than expected, but nothing truly wild.

It appears that Robinhood is simply going up because it is. This happens in 2021; we just have to get used to it.

But what matters most for our purposes is that Robinhood’s decision to sell some IPO stock to its users did not manage to create so much float for the now-public unicorn to diminish weird trading. You can go public in an unusual manner and still catch a stonk wave. Now we know.

The Extreme Tech Challenge Global Finals 2021 starts tomorrow

Get ready for a startup throwdown of global proportions (literally). We’re the proud hosts of the Extreme Tech Challenge (XTC) Global Finals, and the pitch competition action starts tomorrow, July 22 at 9:00 am (PT).

Pro housekeeping tip: Attending this virtual pitch fest is 100% free, but you need to register here first.

Not familiar with XTC? It’s the world’s largest pitch competition focused on solving humanity’s most vexing challenges. You gotta love a competition that serves the greater good — and a startup ecosystem for purpose-driven companies determined to build a more sustainable, equitable, healthy, inclusive and prosperous world.

The road to the XTC finals was crowded, to say the least. More than 3,700 startups from 92 countries applied to compete in one of these categories: Agtech, Food & Water, Cleantech & Energy, Edtech, Enabling Tech, Fintech, Healthtech and Mobility & Smart Cities.

Talk about a daunting endeavor. Team XTC, which consisted of deeply experienced investors, entrepreneurs and executives, winnowed down that field to these seven competing finalists: Wasteless, Mining and Process Solutions, Testmaster, Dot Inc., Hillridge Technology, Genetika+ and Fotokite.

Tomorrow’s competition takes place in two rounds, and each startup team will have to bring its best if they hope to impress this panel of judges — all leaders in sustainability and social impact.

Young Sohn, co-founder, XTC and chairman at Harmann International; Bill Tai, co-founder, XTC and partner emeritus, Charles River Ventures; Regina Dugan, president and CEO of Wellcome Leap; Jerry Yang, founder/partner of AME Cloud Ventures and co-founder of Yahoo!; Lars Reger, CTO and EVP at NXP Semiconductors; and Michael Zeisser, managing partner at FMZ Ventures.

In a classic, “but wait, there’s more” moment, the day also features several presentations from some of the leading voices in sustainability. Take a look at the two examples below, and check out the complete XTC finals agenda and the roster of speakers:

  • The Keynote Address: Tune in as Beth Bechdol, the deputy director-general at the Food and Agriculture Organization (FAO) of the United Nations, provides an update on the latest from her agency.
  • Waste Matters: According to the EPA, the U.S. alone produces 292.4 million tons of waste a year. Can technology help this massive — and growing — issue? Leon Farrant (Green Li-Ion), Matanya Horowitz (AMP Robotics) and Elizabeth Gilligan (Material Evolution) will discuss their companies’ unique approaches to dealing with the problem.

The Extreme Tech Challenge Global Finals starts tomorrow, July 22. Join us and thousands of people around the world for this free, virtual pitch competition. Register here for your free ticket.

Tumblr debuts Post+, a subscription service for Gen Z creators

As Twitter launches Super Follows, YouTube adds new monetization tools and Instagram embraces e-commerce, the social media sphere is heating up with new ways for creators to make a living. Now, Tumblr is joining the fray with Post+, the platform’s first attempt at allowing users to monetize their content. Post+ is debuting today in limited beta for an exclusive selection of creators in the U.S., who were hand-picked by Tumblr.

Like Twitter’s Super Follows, Tumblr’s Post+ lets creators choose which content they want to put behind a paywall, whether that’s original artwork, personal blog posts or Destiel fanfic. Creators can set the price for their subscriber-only content starting at $3.99 per month, with additional tiers at $5.99 and $9.99. The process of making content under Post+ is the same as any other Tumblr post — all creators will have to do is check a box to indicate that the post is for paying subscribers only, whether that’s a video, audio clip, text post, image, etc.

Image Credits: Tumblr

“Not reserved only for professionals, or those with 10K followers or higher, Tumblr’s Post+ will push the boundaries of what’s considered money-making content on the internet: Shitposters, memelords, artists, fan fiction writers, all of the above and everyone in between will be able to create content while building their community of supporters, and getting paid with Post+,” a Tumblr spokesperson told TechCrunch.

For millennials who live-blogged their reading of the last Hunger Games” book on its release day in 2010, Tumblr might seem like a relic of the past. Founded in 2007, the platform has gone through plenty of change over the years. In 2013, Tumblr was acquired by Yahoo for $1.1 billion, and then Yahoo was later acquired by Verizon.

Image Credits: SimilarWeb

But a massive shift came for Tumblr in December 2018, when the platform banned all sexually explicit content and pornography. A month prior, the Tumblr app had been removed from the iOS App Store after child pornography passed through the app’s filtering technology, which led the platform to ban pornography entirely. Four months after the ban, Tumblr’s monthly page views had declined by 151 million, or 29%. Since then, the platform has retained a core userbase, hovering between about 310 million and 377 million page views per month, according to SimilarWeb, though the analytics still indicate a slight downward trend. Tumblr declined to provide its monthly active user numbers, but shared that the platform has more than 11 million posts per day and 500 million blogs.

In 2019, the platform was sold to Automattic, the company that owns WordPress. Though Tumblr hasn’t exhibited significant growth since the fateful porn ban, under its new ownership, it’s exploring new ways to generate profit by creating features that appeal to its now younger demographic. According to Tumblr, over 48% of users are Gen Z. These Gen Z users spend 26% more time on the platform than older bloggers, and their average daily usage time is increasing over 100% from year to year.

Evernote quietly disappeared from an anti-surveillance lobbying group’s website

In 2013, eight tech companies were accused of funneling their users’ data to the U.S. National Security Agency under the so-called PRISM program, according to highly classified government documents leaked by NSA whistleblower Edward Snowden. Six months later, the tech companies formed a coalition under the name Reform Government Surveillance, which as the name would suggest was to lobby lawmakers for reforms to government surveillance laws.

The idea was simple enough: to call on lawmakers to limit surveillance to targeted threats rather than conduct a dragnet collection of Americans’ private data, provide greater oversight and allow companies to be more transparent about the kinds of secret orders for user data that they receive.

Apple, Facebook, Google, LinkedIn, Microsoft, Twitter, Yahoo and AOL (to later become Verizon Media, which owns TechCrunch — for now) were the founding members of Reform Government Surveillance, or RGS, and over the years added Amazon, Dropbox, Evernote, Snap and Zoom as members.

But then sometime in June 2019, Evernote quietly disappeared from the RGS website without warning. What’s even more strange is that nobody noticed for two years, not even Evernote.

“We hadn’t realized our logo had been removed from the Reform Government Surveillance website,” said an Evernote spokesperson, when reached for comment by TechCrunch. “We are still members.”

Evernote joined the coalition in October 2014, a year and a half after PRISM first came to public light, even though the company was never named in the leaked Snowden documents. Still, Evernote was a powerful ally to have onboard, and showed RGS that its support for reforming government surveillance laws was gaining traction outside of the companies named in the leaked NSA files. Evernote cites its membership of RGS in its most recent transparency report and that it supports efforts to “reform practices and laws regulating government surveillance of individuals and access to their information” — which makes its disappearance from the RGS website all the more bizarre.

TechCrunch also asked the other companies in the RGS coalition if they knew why Evernote was removed and all either didn’t respond, wouldn’t comment or had no idea. A spokesperson for one of the RGS companies said they weren’t all that surprised since companies “drop in and out of trade associations.”

The website of the Reform Government Surveillance coalition, which features Amazon, Apple, Dropbox, Facebook, Google, Microsoft, Snap, Twitter, Verizon Media and Zoom, but not Evernote, which is also a member. (Image: TechCrunch)

While that may be true — companies often sign on to lobbying efforts that ultimately help their businesses; government surveillance is one of those rare thorny issues that got some of the biggest names in Silicon Valley rallying behind the cause. After all, few tech companies have openly and actively advocated for an increase in government surveillance of their users, since it’s the users themselves who are asking for more privacy baked into the services they use.

In the end, the reason for Evernote’s removal seems remarkably benign.

“Evernote has been a longtime member — but they were less active over the last couple of years, so we removed them from the website,” said an email from Monument Advocacy, a Washington, D.C. lobbying firm that represents RGS. “Your inquiry has helped to prompt new conversations between our organizations and we’re looking forward to working together more in the future.”

Monument has been involved with RGS since near the beginning after it was hired by the RGS coalition of companies to lobby for changes to surveillance laws in Congress. Monument has spent $2.2 million in lobbying to date since it began work with RGS in 2014, according to OpenSecrets, specifically on lobbying lawmakers to push for changes to bills under congressional consideration, such as changes to the Patriot Act and the Foreign Intelligence Surveillance Act, or FISA, albeit with mixed success. RGS supported the USA Freedom Act, a bill designed to curtail some of the NSA’s collection under the Patriot Act, but was unsuccessful in its opposition to the reauthorization of Section 702 of FISA, the powers that allow the NSA to collect intelligence on foreigners living outside the United States, which was reauthorized for six years in 2018.

RGS has been largely quiet for the past year — issuing just one statement on the importance of transatlantic data flows, the most recent hot-button issue to concern tech companies, fearing that anything other than the legal status quo could see vast swaths of their users in Europe cut off from their services.

“RGS companies are committed to protecting the privacy of those who use our services, and to safeguard personal data,” said the statement, which included the logos of Amazon, Apple, Dropbox, Facebook, Google, Microsoft, Snap, Twitter, Verizon Media and Zoom, but not Evernote.

In a coalition that’s only as strong as its members, the decision to remove Evernote from the website while it’s still a member hardly sends a resounding message of collective corporate unity — which these days isn’t something Big Tech can find much of.

Hear top VCs Albert Wegner, Jenny Rooke, and Shilpi Kumar talk green bets at the Extreme Tech Challenge finals

This year, TechCrunch is proudly hosting the Extreme Tech Challenge Global Finals on July 22. The event is among the world’s largest purpose-driven startup competitions that are aiming to solve global challenges based on the United Nations’ 17 sustainability goals.

If you want to catch an array of innovative startups across a range of categories, all of them showcasing what they’re building, you won’t want to miss our must-see pitch-off competition.

You can also catch feature panels hosted by TechCrunch editors, including one of the most highly anticipated discussions of the event, a talk on “going green” with guest speakers Shilpi Kumar, Jenny Rooke, and Albert Wenger, all of whom are actively investing in climate startups that are targeting big opportunities

Shilpi Kumar is a partner with Urban Us, an investment platform focused on urban tech and climate solutions. She previously led go-to-market and early sales efforts at Filament, a startup focused on deploying secure wireless networks for connected physical assets. As an investor, Shilpi has also focused on hardware, mobility, energy, IoT, and robotics, having worked previously for VTF Capital, First Round Capital, and Village Global.

Jenny Rooke is the founder and managing director of Genoa Ventures, but Rooke has been deploying capital into innovative life sciences opportunities for years, including at Fidelity Biosciences and later the Gates Foundation, where she helped managed more than $250 million in funding, funneling some of that capital into genetic engineering, diagnostics, and synthetic biology startups. Rooke began independently investing under the brand 5 Prime Ventures, ultimately establishing among the largest life sciences syndicates on AngelList before launching Genoa.

Last but not least, Albert Wenger, has been a managing partner at Union Square Ventures for more than 13 years. Before joining USV, Albert was the president of del.icio.us through the company’s sale to Yahoo and an angel investor, including writing early checks to Etsy and Tumblr. He previously founded or co-founded several companies, including a management consulting firm and an early hosted data analytics company. Among his investments today is goTenna, a company trying to advance universal access to connectivity by building a scalable mobile mesh network.

Sustainability is the key to our planet’s future and our survival, but it’s also going to be incredibly lucrative and a major piece of our world economy. Hear from these seasoned investors about how VCs and startups alike are thinking about Greentech and how that will evolve in the coming years.

Join us on July 22 to find out how the most innovative startups are working to solve some of the world’s biggest problems. And best of all, tickets are free — book yours today!

SoftBank buys perpetual Yahoo trademark license for $1.6 billion

As firework volleys launched out of New York City harbor last night, a very different celebration was likely taking place just a few blocks down the street at Verizon’s official headquarters in Midtown.

The telco, which owns TechCrunch for hopefully just a few more weeks pending the close of the Apollo acquisition of our parent company Verizon Media, announced overnight that it had signed an agreement with Z Holdings, a division of Japan’s SoftBank Group, to sell trademarks within the Japan market around the Yahoo brand and related tech infrastructure for approximately $1.6 billion.

The extremely descriptive Z Holdings owns SoftBank’s internet businesses in Japan, most notably Yahoo Japan, whose web portal remains the country’s most trafficked news website. Under its most current agreement with Verizon Media (formerly Oath, formerly AOL + Yahoo), Yahoo Japan paid a regular royalty for the rights to use the Yahoo brand name in Japan and associated technologies. Those royalties will now stop in lieu of a one-time upfront payment.

The resolution of the agreement was one of the key nuances left to figure out in Apollo’s $5 billion buyout of Verizon Media. The deal will give Verizon significant additional consideration as it works to pare down its debt load acquired from a spending spree on wireless spectrum auctions, such as its $52.9 billion acquisition of C-band spectrum earlier this year.

In a press statement from Z Holdings, the company said that “Although the Yahoo Japan License Agreement will be terminated, Yahoo Japan and Verizon Media will retain their cooperative business and technology relationship. Yahoo Japan will continue to deliver more convenient and innovative services under the ‘Yahoo! JAPAN’ brand, based on its mission statement: ‘UPDATE JAPAN.’” Expect further patches to Japan to be delivered shortly, I guess.

Equity Monday: TechCrunch goes Yahoo while welding robots raise $56M

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.

This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here.

This morning was a notable one in the life of TechCrunch the publication, as our parent company’s parent company decided to sell our parent company to a different parent company. And now we’re to have to get new corporate IDs, again, as it appears that our new parent company’s parent company wants to rebrand our parent company. As Yahoo.

Cool.

Anyway, a bunch of other stuff happened as well:

We’re back Wednesday with something special. Chat then!

Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday at 6:00 AM PST, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts!

Alchemy raises $80M at a $505M valuation to be the ‘AWS for blockchain’

Blockchain developer platform Alchemy announced today it has raised $80 million in a Series B round of funding led by Coatue and Addition, Lee Fixel’s new fund. The company previously raised a total of $15.5 million, so the latest financing brings its total raised to $95.5 million since it launched in 2017.

The latest round caught our attention for a few reasons.

First, the company, which describes itself as the backend technology behind the blockchain industry, went from public launch to a $505 million valuation in a matter of just eight months. During that time, Alchemy says it powered over $30 billion in transactions for tens of millions of users all over the world. Second, the startup says it also already powering the majority of the NFT industry.

And finally, its investors in the round include a high-profile mix of institutions and individuals such as DFJ Growth, K5 Global, the Chainsmokers, actor Jared Leto and the Glazer family (owners of the Tampa Bay Buccaneers and Manchester United). They joined existing backers including Yahoo co-founder and former CEO Jerry Yang, Pantera Capital, Coinbase, SignalFire, Samsung, Stanford University, Google chairman and Stanford University President John L. Hennessy, Charles Schwab, LinkedIn co-founder Reid Hoffman and others.

Sources with inside knowledge of Alchemy’s operations tell TechCrunch that the company has already grown its business more than eightfold since it signed the Series B term sheet. They also said Alchemy had over $300 million of investor demand wanting to enter the round and is being inbounded to do another financing at “many times” the current valuation.

TechCrunch talked with Alchemy co-founders Nikil Viswanathan (CEO) and Joe Lau (CTO) about the raise and their passion for the startup’s mission was clear. As is its explosive growth.

“We realized that in order for space to thrive and build to its full potential, we needed to build a developer platform layer for blockchain,” Viswanathan told TechCrunch.

Alchemy’s goal is to be the starting place for developers considering to build a product on top of a blockchain or mainstream blockchain applications. Its developer platform aims to remove the complexity and costs of building infrastructure while improving applications through “necessary” developer tools.

The startup powers a range of transactions across nearly every blockchain vertical, including financial institutions, exchanges, billion-dollar decentralized finance projects and multinational organizations such as UNICEF. It has also quickly become the technology behind every major NFT platform, including Makersplace, OpenSea, Nifty Gateway, SuperRare and CryptoPunks.  

“Every time you open DoorDash, you’re using Amazon’s infrastructure,” Lau said. “Every time you interact with an NFT, you’re using Alchemy. It’s being powered by Alchemy underneath the hood.”

While the pair would not provide hard revenue figures, the company – which operates as a SaaS business – says it increased its revenue by 600% in 2020.

For inside players, Alchemy’s efforts are paving the way for the whole industry. 

“The cryptoeconomy is innovating faster than any technological movement that came before it, and Alchemy has been a key driver of that,” said Coinbase President and COO Emilie Choi. “Alchemy enables developers to build the rich ecosystem of applications necessary for mainstream blockchain adoption.”

Pantera Capital’s Paul Veradittakit describes Alchemy as “the Amazon Web Services (AWS) of the blockchain industry” that is “enabling the vision of a decentralized web.”

“While in Web 2.0, Microsoft, Apple and AWS are three of the most valuable companies in the world because they are the developer platform powering the computer and internet industries, Alchemy is primed to do the same for the blockchain,” he said.

The company believes the comparison to AWS is fair, noting that: “Just as AWS provides the platform that powers Uber, Netflix and much of the technology industry, Alchemy powers infrastructure for many large players in the blockchain industry.”

Alchemy plans to use its new capital to expand its developer platform to new blockchains, fuel global expansion and to open new offices in the U.S. and globally. The startup is based in San Francisco and is planning to open an office in New York.  

“We are going to use the funds to support new chains with our developer platform,” Viswanathan said. “We also expect to 5x the team this year.”

But to be clear, Alchemy prides itself on being lean and mean.

“We just went from 14 to 22 employees,” Lau said. “We have intentionally wanted to keep the team as small as possible.”

The blockchain space has been the subject of increased investor interest as of late.

In March, BlockFi, which describes itself a financial services company for crypto market investors, announced it had closed on a massive $350 million Series D funding that valued it at $3 billion. Also last month, Chainalysis, a blockchain analysis company, revealed the close of $100 million in Series D financing, which doubled its valuation to over $2 billion.