a16z leads $5 million in blockchain-based storage protocol Arweave

Data storage and application development protocol Arweave secured a $5 million round led by Andreessen Horowitz's a16z, with participation from Multicoin Capital, Union Square Ventures, 1kx, and Techstars. The startup's live blockchain enables users to store digital files like emails or websites permanently. But according to Multicoin Capital's Kyle Samani, the immutable storage solution offered by Arweave applies to multiple verticals beyond just archiving the internet. Arweave intends to use the new capital to help incentivize developer participation and increase platform adoption in preparation for Arweave 2.0.

Why it matters:

• Arweave could be looking to fuel community growth ahead of Filecoin's anticipated launch in Q1 '20. Despite Arweave's year-plus head start (it launched in Q3 '18), Filecoin ($FIL) raised over $250 million in its 2017 ICO, giving it the funds and broad stakeholder base to win mindshare in the decentralized storage sector.
• The effort also accentuates the importance of a diverse developer community. Developers are often the first users of new protocols and use their experience to improve the network and pave the path to future adoption. The saturated state of decentralized application platforms will push these development groups towards networks that are offering financial rewards.
  

Let us know what you loved about the report, what may be missing, or share any other feedback by filling out this short form. All responses are subject to our Privacy Policy and Terms of Service.