Electric Capital Joins Others in Immunefi $24M Series A Round

Crypto bug bounty platform Immunefi has generated $24 million in a Series A funding round with investors like Electric Capital, Polygon Ventures, Samsung Next, P2P Capital, North Island Ventures, Third Prime Ventures, Lattice Capital, and Stratos DeFi.

Markedly, the fund was led by a San Fransisco-based thesis-driven venture firm known as Framework Ventures. 

Following a series of vulnerabilities in the blockchain industry, Immunefi will use proceeds from its Series A round to expand its in-house capacity. Also, as the company tries to meet the increasing demand for blockchain security and bug bounty service, Immunefi intends to expand its team by hiring more employees. 

Immunefi is one of the largest widely adopted security platforms whose focus is on bug bounties and security services in Web3.0 projects.

The firm was established in December 2020 and since then, it has paid out $60 million in bounty services and backed over 300 projects in the crypto industry including Chainlink (LINK), Wormhole, Compound (COMP), and MakerDAO. So far, Immunefi has salvaged about $25 billion in users fund. 

Immunefi Incentivize Whitehat Hackers

Notably, this bug bounty platform enjoys the privilege of a huge community of whitehat hackers who reviews project blockchain and smart contract codes.

Once any vulnerability or loophole is discovered, these white hackers report the vulnerability and get paid in return. Invariably, Immunefi pays whitehat hackers based on the extent of the vulnerability discovered, sometimes it goes as high as $10 million.

Before bug bounty became a thing in Web3.0 projects, some tech companies like Apple and Microsoft already made use of similar bug bounty services. Earlier, the constraint for Web3.0 had partly been that whitehat hackers may be more incentivized to explore the discovered vulnerability and cart away with the loot from it instead of reporting the bug. 

In the past before Immunefi, the reward for bug bounty especially for whitehat hackers was only a meager amount.

Immunefi instead, created a standard bug bounty scale that encouraged crypto firms to pay as much as 10% of the funds at potential risk or funds that have already been hijacked. This was evident in the case of Nomad Bridge which experienced a hack and promised whitehat hackers 10% of the stolen fund if returned.