Sources familiar with the matter told Meczyki that Nischal Shetty, co-founder of Indian crypto exchange WazirX, is in advanced stages of talks to raise the first funding round for his new venture.
Sources said Shetty is raising $20 million to $30 million in a seed funding round for his blockchain startup Shardem, requesting anonymity because the discussions are ongoing and private. The funding round proposes to value the startup at around $200 million, sources said.
Sources said Spartan Group, Struck Crypto, Big Brain Holdings and Cogitant Ventures are among the few investors that have engaged to participate in the round.
Shetty confirmed that the startup is in talks to raise funding, but said the round is not closed.
“We are currently working with top VCs in an ongoing funding round. While this hasn’t closed yet, we hope to continue to make Shardem and blockchain technology faster, smarter, and easier to use for everyone.” There will be great support for our mission,” he said in a statement through a spokesperson.
“We look forward to sharing more details on how we are working to turbocharge the expansion of our team and accelerate Web3 adoption for developers and their users.”
Shardem is attempting to solve the trilemma affecting most blockchains, where they have to prioritize between scalability, security, and decentralization, but at best they can choose only two of these features.
Shardeum is using a technology called sharding that splits the network into pieces resulting in more transactions being processed, verified and validated in parallel, the startup explained in an investor deck, reviewed by Meczyki. Is.
The startup’s eponymous blockchain, which is currently in the testnet, aims to be EVM-friendly and provide proof-of-stake and proof-of-quorum consensus to reduce the cost of running the network, which translates to lower transaction fees. Tantra is to use, and there are three types of use. The nodes — validator, archival and standby — in its network, it said in the investor deck.
Shardem estimates that it will be able to process over 100,000 transactions per second with 100,000 nodes and maintain a latency of 10 seconds, it said in the deck. The deck states that the L1 blockchain will also provide a way for Ethereum developers to transition to Shardem and help them maintain stable gas fees.
According to two sources familiar with the matter, the startup plans to target Indian and emerging markets initially. It aims to launch the mainnet and launch over 500 million SHM tokens in the quarter starting October, the deck said.