Quick take:
- Goldsky has raised $20 million in a funding round co-led by Dragonfly Capital and Felicis.
- The data infrastructure service provider wants to bring real-time on-chain data analytics to crypto companies.
- Goldsky is also backed by angel investors Elad Gil, Zach Perret and William Hockey of Plaid, as well as, Magic Eden’s Zhuoxun Yin.
Goldsky has completed a $20 million funding round co-led by Felicis and Dragonfly Capital. The fundraising also attracted participation from angel investors including Elad Gil, Zach Perret and William Hockey of Plaid, as well as, Magic Eden’s Zhuoxun Yin.
The web3 data infrastructure service provided has now raised $22 million in total. Goldsky was established in October 2021 by CEO Kevin Li and his co-founder whom he met while working as data engineers at Heap Analytics.
The company wants to bring real-time, on-chain data to crypto companies, addressing one of the biggest challenges that the web3 industry faces today.
According to Li, current analytics firms have yet to address the challenge of real-time data analytics, which makes his company unique.
Speaking to TechCrunch, Li said: “I think there are a lot of more aspirational tools that are out there, and by all means, we need those tools. That’s how we advance the state of crypto. But as an infrastructure company who is marketing to effectively every other crypto company, what we’re building is extremely obvious and valuable to our customers.”
On-chain data has become one of the most in-demand commodities in web3. Project creators and crypto firms rely on on-chain data to woo investors. If the data provided cannot be relied upon, then it can be challenging to establish plausible valuation projections for fundraising.
Li said that his company raised $20 million before the summer period, which was plagued by a massive crypto market downturn. However, the web3 developer thinks that companies providing real use cases in the space have bigger breathing space to absorb downturns created by crypto winter.
His point can be justified by the level of venture capital funding witnessed despite the current bear market. Web3 investors are betting big ahead of the next rebound. On Tuesday, UK venture capital firm Northzone launched a €1 billion fund to invest in web3 startups, fintech, and SaaS among other emerging industry verticals.
In Goldsky’s case, Li stresses that it was important for the company to get real data into their product to make the project work. He pointed to a previous project, which faced bottlenecks related to data.
“It was more about, how can we get the data we need to ship those features because we can make the prettiest [product] in the world, but if it doesn’t actually represent real data, no one’s going to use it,” Li explained citing his previous project, a decentralised exchange aggregator platform called Moton.
Goldsky’s ability to offer real-time on-chain data will put it in a class of its own according to Sundeep Pechu, a general partner at Felicis. With a majority of web3 on-chain data and analytics service providers focused on building APIs or SQL databases, Pechu thinks Goldsky’s biggest rival will be in-house solutions.
“When we were doing diligence, we were talking to a bunch of companies, and we were asking them what they were using. Almost everybody was building something internally, so it’s just such a nascent market,” Pechu told TechCrunch.
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