Table of Contents
As Web3 evolves, user experience remains a critical barrier to widespread adoption. Layer3, in its efforts to break this barrier and revolutionize how users interact with Web3 technologies, has recently secured $15 million in a Series A funding round.
Layer 3’s Funding Overview
Layer 3 has raised $15 million in a Series A funding round co-led by ParaFi and Greenfield Capital. The round saw participation from notable investors such as Electric Capital, Immutable, Lattice, Tioga, LeadBlock, Bitpanda Ventures, Amber, Stateless, and GD1. This follows a $3.7 million strategic round in 2022 and a $2.5 million round in 2021, bringing the total funds raised by Layer3 to $21.2 million.
About Layer 3
Layer3 was co-founded in 2021 by Nate Leung and Brandon Millman, two tech veterans with experience at companies like Twitter and Yelp. The pair saw an opportunity to make web3 more accessible by creating a tool to help people find high-quality projects that match their passions, whether that’s NFT art, DeFi protocols, or blockchain-based games.
The company is trying to solve a key challenge for Web3 users, which is cutting through the noise to discover the most promising projects. Layer3’s platform uses sophisticated algorithms to analyze on-chain data, social signals, and other metrics, creating a personalized feed of Web3 content for each user. This system filters out low-quality or irrelevant content, enhancing the discovery process. Users can save interesting projects, connect with like-minded people, and even contribute to projects directly through the platform.
“Layer3’s omnichain identity and distribution protocol creates an unrivaled flywheel effect, where crypto consumers discover new projects, and projects reward their on-chain activity,” said Brandon Kumar, co-founder of Layer3. “By aggregating user activity across multiple chains and dApps, Layer3 generates a unified view of a user’s on-chain identity and enables highly targeted, efficient distribution of tokens.”
Layer 3’s Impact and Reach
The company’s distribution infrastructure is used by more than 100 crypto teams and has served over 3 million unique users in 120 countries, supporting 25 different blockchains. Layer3’s interface is designed to provide users with an engaging experience. With each project undertaken, users can earn a CUBE (Credential to Unify Blockchain Events), which serves as a record of their activity across various fragmented chains via public key. You can consider CUBEs as user-owned on-chain session data. And in just 4 months of its launch, users have already minted more than 10 million CUBEs on Layer 3.
“Layer3 is poised to revolutionize on-chain value distribution by addressing critical challenges for both users and leading Web3 projects,” said Claude Donzé, principal at Greenfield Capital. “For users, Layer3 offers a trusted, guided exploration of Web3 by rewarding them for meaningful engagement. For networks, protocols and dApps, Layer3 provides a powerful solution to attract and retain the right users through targeted token distribution.”
Future Plans and Prospects
Looking ahead, Layer3 is planning to launch its token L3 later this year. The company is also reportedly working on an AI-enabled protocol to optimize token distribution across different factions of crypto communities. With the Web3 space heating up and airdrop activity intensifying, Layer3 is well-positioned to capture the majority of this demand given its direct relationship with the consumer, efficiency, and targeting capability.
Final Thoughts
Of course, Layer3 is not the only company trying to make web3 more accessible. Competitors like Rabbithole and Backdrop are also building discovery tools, while established players like OpenSea and Coinbase are investing heavily in education and onboarding. However, Layer3’s focus on personalization and community-building sets it apart.
Layer3’s innovative approach to user acquisition and retention through targeted token distribution could prove to be a game-changer. By leveraging AI and omnichain identity, the company is set to help projects reach and engage the right users while providing a seamless, rewarding experience for consumers exploring Web3. With strong backing from leading investors and a growing network of partners, Layer3 is one to watch in the rapidly expanding Web3 space.
