The Graph raises $205M aiming to establish application programming interfaces for Web3

To entice new developers to its platform, Blockchain data indexing protocol The Graph has announced a $205 million ecosystem fund, demonstrating that venture capital firms are still interested in supporting growth funds focused on decentralized applications.

Several big names participated in the ecosystem fund, notably Digital Currency Group, Reciprocal Ventures, Multicoin Capital, Gumi Cryptos Capital, NCG, and HashKey. Through the fund, the company aims to help major projects in The Graph’s ecosystem expand and grow faster.

Deng Chao, managing director of HashKey Capital, stated that the company would provide resources and support to decentralized application developers and projects seeking access to the institutional market. 

The Graph to build application programming interfaces for Web3

DCG, or Digital Currency Group, is already a delegate for The Graph and will continue to support the ecosystem’s development in the areas of DeFi and the Metaverse.

The Graph is “an essential part of the Web3 stack,” according to Gumi Cryptos Capital’s Miko Matsumura, alluding to the network’s aim of establishing application programming interfaces for the next version of the internet, Web 3.0.

We believe @graphprotocol is mission critical infra for the buildout of #web3

If you’re building on The Graph, or are working on tooling to support the ecosystem, my DMs are open 📥 https://t.co/w4Z59vYH3R

— Craig Burel (@CraigBurel) February 17, 2022

In order to increase its innovation activities, the Graph Foundation has provided significant funding to its developer network. The foundation announced a $60 million grant to Semiotic AI in December last year to expand the network’s artificial intelligence research & design capacity. The open-source API platform, Guild, received $48 million in funding in the same month to improve The Graph’s subgraph features.

Venture capital financing for blockchain and cryptocurrency initiatives continues to rise this year, following a record-breaking year in 2021. Several nine-figure fundraising rounds have recently been announced, including $200 million raises for Alchemy and Aleo, a $450 million round for Polygon, and $358 million in Animoca Brands, raising its valuation to $5 billion, as TheCoinRise continuously covers.