It has been revealed the fact that Solana-based multisig protocol Squads managed to raise $5.7 million these days. Check out the latest reports about this below.
Solana-based multisig protocol makes important moves
Squads Labs, a software development company, has successfully raised $5.7 million in a strategic funding round to support the growth of its Solana-based multisig protocol, Squads.
The funding round, which was announced on Monday, was led by Placeholder VC, a leading venture capital firm that invests in blockchain and cryptocurrency projects.
Other prominent investors that participated in the funding round include Multicoin Capital, Solana Ventures, Jump Crypto, and several other institutional investors.
In addition to these institutional investors, several angel investors also participated in the funding round. These investors include Anatoly Yakovenko, co-founder of Solana Labs, Lucas Bruder, CEO of Jito Labs, and Mert Mumtaz, CEO of Helius Labs.
The participation of these angel investors is a testament to the potential of Squads and its Solana-based multisig protocol.
According to Stepan Simkin, co-founder of Squads Labs, this funding round was an equity with token warrants round.
However, he declined to comment on the valuation of the company. The funding will be used to support the ongoing development and growth of Squads, which is designed to provide a secure and user-friendly multisig solution for digital asset management.
Squads raised funds for their strategic round from April to July this year, with a total funding of $12.5 million so far.
This includes a $5 million round from last year and a $1.5 million round in 2021. Squads is a multisig protocol that offers a smart contract wallet system to secure and manage digital assets on-chain, competing with custody firms like Fireblocks and Copper.
Unlike multi-party computation, Squads’ system exists fully on-chain, providing complete transparency and immutability.
Squads’ focus solely on Solana is a competitive advantage, avoiding compatibility and user experience issues that arise when trying to cover all blockchains simultaneously.
In addition, Squads Labs provides a web app with SquadsX and Squads Pro products.
The web app is built on top of Squads protocol, helping crypto firms manage their developer and treasury assets via multisig.
SquadsX is a browser extension wallet that acts as a companion tool for the app, while Squads Pro is a paid subscription that offers more features at $399 per month.
Squads iOS product
Squads, which launched in 2021, has helped more than 100 clients, including Helium, Jito, Pyth, and Tensor, to secure over $500 million in assets.
Squads intends to expand further by improving its services and releasing its retail-oriented iOS product later this year.
According to Chris Burniske, a partner at Placeholder VC, the FTX’s collapse taught the entire Solana ecosystem valuable lessons about centralization risks.
However, he believes that Squads is a useful tool that eliminates the need for centralized counterparty custody risk. Squads Labs currently employs 11 people, and CEO Simkin plans to keep the team small in the near future.
