Andreessen Horowitz Supports Crypto Startup EigenLayer With $100 Million Investment
Venture Capital firm Andreessen Horowitz has invested $100 million in crypto restating startup EigenLayer after its latest funding round.
A new Bloomberg report shows the company backed the startup with a $100 million investment as it gains popularity with its restaking model.
Venture firm Andreessen Horowitz invested $100 million in crypto startup EigenLayer, suggesting that some of the industry’s top backers are still betting on blockchain https://t.co/IphqmLd9br
— Bloomberg (@business) February 22, 2024
EigenLayer’s retaking plan allows Ethereum stakers to earn more yield by providing security to other projects with the same ETH stake. Essentially, it is a reuse of ETH stakes for multiple platforms on the network.
The platform has gained traction this year from digital asset users and, more recently, from institutions following this funding round. Sreeram Kanaan, a former associate professor at the University of Washington and the founder of the company in a recent interview summarized the model of the company.
“The idea is that when you stake on Ethereum, you are promising that you’re going to run the Ethereum network nodes correctly,” Kannan said in an interview.
“With restaking, you are taking the same Ether and making additional promises that you will also validate other networks correctly.”
Kanaan revealed that the agreement will be disclosed on Thursday adding that the firm raised $50 million in March but did not disclose the valuation of the company.
Although the company runs on a points system for users who restake building community integration, he added that there are currently no plans to launch a native EigenLayer token.
Similarly, Ali Yahya, a partner at Andreessen Horowitz, hailed EigenLayer’s importance in the
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