As cryptocurrency markets surge again, funding for new startups is picking up pace. 0G Labs, a web3 infrastructure company, has secured a significant $35 million in a pre-seed funding round, revealed exclusively to TechCrunch.
This substantial funding exceeds typical amounts for a pre-seed round, marking a significant milestone for 0G. Co-founder Michael Heinrich expressed that their initial target was $5 million to develop fundamental technology.
0G, also known as ZeroGravity, is dedicated to crafting a modular AI blockchain aimed at addressing key challenges in on-chain AI applications within the web3 ecosystem, such as speed and cost efficiency. Competitors in this domain include Celestia and EigenLayer, who share a focus on modularity.
Modularity allows developers the flexibility to select components for building blockchain systems or applications, akin to customizing orders at a restaurant. This approach empowers developers to tailor components to their specific requirements.
Heinrich highlighted that their objective is to empower any blockchain to match the performance and cost-effectiveness of web2 applications through modularity.
In contrast, Ethereum operates as a monolithic blockchain, lacking the flexibility of component separation, thus hindering customization. Heinrich emphasized the necessity of foundational infrastructure to integrate existing centralized AI technologies into blockchain systems.
The founding team of Heinrich, Ming Wu, Fan Long, and Thomas Yao recognized a significant market demand for enhanced data availability and storage infrastructure, crucial for scaling blockchain systems and enabling on-chain AI. With Wu and Long’s experience from Conflux Network and Yao’s background at IMO Ventures, alongside Heinrich’s expertise from founding garten, the team embarked on addressing this infrastructure gap.
Heinrich stressed the necessity for decentralized storage and a broad data pipeline to accommodate numerous users simultaneously. This scalability and storage infrastructure lay the groundwork for partnerships with execution layer providers.
The fundraising process witnessed significant interest from investors, with 0G ultimately choosing Hack VC as the lead investor. Over 40 crypto-native institutions, including Alliance, Animoca Brands, and Delphi Digital, joined the funding round, reflecting the community-driven ethos of web3.
Launching new use cases
The raised capital will primarily fuel engineering recruitment and enhance 0G’s market functionality, community, and ecosystem. While 0G currently lacks its token, Heinrich hinted at future token issuance, aligning with the company’s web3 ethos.
0G’s core focus is on achieving high throughput, aiming for a throughput of 50 Gbps, far surpassing competitor rates. This high throughput is crucial for on-chain AI and gaming applications, ensuring efficient data processing and minimal transaction costs.
Upon mainnet launch, anticipated by the third quarter of the year, 0G aims to attract layer 2 blockchains and high-performance decentralized applications as initial ecosystem members. The platform envisions unlocking new use cases, including on-chain AI, gaming, and high-frequency DeFi, with minimal gas costs per transaction.
Heinrich emphasized 0G’s commitment to serving humanity through diverse applications, ranging from deepfake detection to supporting high-performing blockchain use cases, positioning the platform as a public good in the evolving web3 landscape.