Ethereum Virtual Machine (EVM) Layer 2 firm Morph, announced it has raised $19 million in a seed funding led by investment firm DragonFly Capital.

Other participants in the $19 million funding round included Pantera Capital, Foresight Ventures, Spartan Group, MEXC Ventures, Symbolic Capital, Public Works, MH Ventures, and Everyrealm, — an additional $1 million was raised in an angel round.

The funding will be used to acquire talent, enhancing developer incentives, expanding marketing efforts and to improve the Morph’s visibility within the Layer 2 ecosystem and refining its technical infrastructure, said the firm.

Morph to “Revolutionize” Blockchain Tech is Used

“Morph is set to revolutionize how blockchain technology is utilized by organizations within the entertainment, finance, social and gaming industries,” said Cecilia Hsueh, co-founder and CEO at Morph, in a press release.

EVM is a software that sets the rules of computing the state of the Ethereum network from block to block. Morph is a EVM Layer 2 for value-driven dApps. The firm is the first to launch with a decentralized sequencer on Ethereum.

“The existing L2 market is focused solely on short-term gains to be able to win the next casino round, rather than building for sustainable success,” said Azeem Khan, co-founder and COO at Morph. 

“We proudly help developers to create dApps that can truly make a long-term difference and win over a mainstream user base. Being one of the first to launch with a decentralized sequencer on Ethereum is also an example of our commitment to decentralization from the beginning,” adds Khan.

Bull Market Triggers Increased VC Funding

As the crypto market enters a bull run in 2024, this in turn is triggering positive sentiment with several venture capital investor firms eyeing up new projects to invest in.

The last few years have been followed by scandals and the FTX collapse in the crypto space,  but it seems the community is now seeing some light at the end of the tunnel.

Venture capital investment in crypto startups have climbed 2.5% to $1.9 billion in Q4 2023, marking the first such rise since Q2 2022, according to recent PitchBook data.