November 8, 2024
Pharos, a crypto startup focused on building a Layer 1 blockchain aimed at transforming fintech applications, has concluded its seed funding round with $8 million in investments. The round, co-led by Lightspeed Faction and Hack VC, also saw contributions from SNZ Capital, with additional participation from Reforge, Dispersion Capital, Hash Global, Generative Ventures, MH Ventures, Zion, and Chorus One. Co-founder and CEO Alex Zhang shared that the funding round, initiated in July and concluded in September, was structured as a SAFE (Simple Agreement for Future Equity) with token warrants.
Pharos is developing a Layer 1 blockchain network to tackle scalability challenges in web3 and fintech integration. Highlighting current limitations in Layer 1 and Layer 2 blockchains, CEO Alex Zhang explained that Pharos aims to provide "payment-grade web3 infrastructure" with a user experience on par with web2 systems, supporting billions of users. Pharos has partnered with ZAN, Ant Digital Technologies' web3 brand, to build infrastructure for real-world assets (RWAs), node services, and security. Another partnership with the Worldwide Stablecoin Payment Network (WSPN) focuses on stablecoin payment solutions, with further collaborations anticipated.
Pharos plans to support transaction speeds of up to 50,000 transactions per second (TPS), positioning itself competitively against other high-performance blockchains like Solana and Ethereum Layer 2 solution Arbitrum. The network is currently under internal development, with plans to launch a testnet in early 2025, followed by a mainnet release later in the year. Currently operating with fewer than 10 team members across the U.S., Hong Kong, and Singapore, Pharos aims to expand to over 20 employees, with roles in cryptography, marketing, and ecosystem development.
About Pharos
Pharos is a blockchain technology startup developing a Layer 1 network for fintech applications, focusing on integrating traditional financial services with web3 solutions. The company aims to address scalability in blockchain, offering infrastructure for high-speed transactions and real-world assets. Founded by Alex Zhang, Pharos operates with a small, globally distributed team and maintains partnerships in the fintech and blockchain sectors.
Website: https://pharosnetwork.xyz/
X: @pharos_network
About Investors
Lightspeed Faction
Lightspeed Faction is a crypto-focused venture capital firm with a track record in supporting blockchain and web3 companies. The firm, part of the larger Lightspeed Venture Partners, is based in the United States and invests across stages, aiming to support blockchain innovation and adoption.
Location: Menlo Park, California.
Website: https://lightspeed.com/
Hack VC
Hack VC is an early-stage investment firm that backs companies in the crypto and blockchain sectors. The firm has been actively investing in web3 infrastructure and decentralized applications.
Location: Nevada, USA
Website: https://www.hack.vc/
SNZ Capital
SNZ Capital is a strategic investor in blockchain and digital assets, providing capital and guidance to projects that drive blockchain utility and growth.
Location: British Virgin Islands
Website: https://www.snzholding.com/
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