Lightning Labs closes $10M investment round to release first merchant product 🚨 This article is 5 years old...
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Lightning Labs closes $10M investment round to release first merchant product
2 min read
Updated: May. 25, 2023 at 2:14 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Lightning Labs has announced they have raised a $10M Series A, saying that the funds will be used to further develop Lightning and scale the developer system. According to Elizabeth Stark, the CEO and co-founder of Lightning Labs, the closing of the funding round was followed by the launch of Lightning Loop, a paid product focused on merchants.
Work on the Lightning Network boosted with a $10 million investment
The second-layer scaling solution to Bitcoin seems to be getting closer with each day. Lightning Labs, the company working on the development of the high-speed transaction protocol Lightning Network, has just closed off another massive investment round and is ready to pour the capital into growing LN.
According to an official announcement from the company, Lightning Labs raised a $10M Series A this month. The investment came a year after a seed round from Jack Dorsey, the CEO of Twitter and founder of Square, Vlad Tenev, the co-founder of Robinhood, and Charlie Lee, the creator of Litecoin.
Lightning Lab’s latest round is being led by Craft Ventures, as well as Ribbit Capital, RRE, M12, and Slow. Big names both from traditional finance and the crypto industry have also participated, including Ross Stevens, the CEO, and Founder of Stone Ridge, John Pfeffer from Pfeffer Capital, David B. Heller, the former co-Head of Securities at Goldman Sachs, and others.
Elizabeth Stark wrote on Medium:
“We at Lightning Labs see this as not an accomplishment in and of itself, but a means to achieving our goal of bringing instant bitcoin transactions to millions of people”
Lightning Labs launches beta version of its first-ever paid merchant product
At the same time, the Series A round was closed, Lightning Labs announced another major milestone for the company. Speaking to Yahoo Finance, Stark said that the company also launched the beta version of Lightning Loop, Lightning Lab’s first-ever paid product.
According to the company, the product is aimed at merchants, namely startups and node operators. Loop will add “inbound liquidity” to receive payments and reduce transaction fees by recycling and reusing Lightning channels, the company explained.
The product’s Loop Out feature will allow funds to be sent out of the Lightning Network to “on-chain” destinations like exchange accounts or cold storage systems, with fees ranging from 0.05 to 0.5 percent. Loop In, on the other hand, will enable typical users to refill their Lightning wallets when funds are depleted by “looping” them from “on-chain” sources such as exchanges or cold storage. The fees for the Loop In feature will be a bit higher, and range from 0.1 to 1 percent.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Lightning Labs
Lightning Labs is developing Lightning: an open protocol layer that leverages the power of blockchains and smart contracts to make cheap, fast, private transactions available to anyone around the world..
Goldman Sachs
Goldman Sachs a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.
Robinhood is an investing platform where you can invest in stocks, ETFs, options, and cryptocurrencies side by side, all commission-free and easily accessible in one app..
Elizabeth Stark is an American entrepreneur and educator.
Jack Patrick Dorsey, born on November 19, 1976, is a testament to the American dream of innovation and entrepreneurship.
Charlie Lee stands prominently in the cryptocurrency community as the founder of Litecoin and currently holds the position of Managing Director at the Litecoin Foundation.