Theory Ventures Bets $12M on Initia: ‘iOS for Web3’ Startup
In a significant move to bolster the development of decentralized applications, Tomasz Tunguz's Theory Ventures has invested $12 million in Initia, a startup that aspires to be the "iOS for web3." This investment is part of a $14 million Series A round, with Theory Ventures contributing around 90% of the capital, according to an exclusive report by TechCrunch.
Initia, co-founded by Zon and Stan, along with Ezaan Mangalji, is aimed at simplifying the complex landscape of building blockchain apps. The current development environment for decentralized apps is highly fragmented, with developers often turning to specialized chains or app chains that are optimized for specific blockchain characteristics such as transaction speed and security. However, these bespoke chains lack interoperability, creating a significant hurdle for developers.
Initia addresses this issue by running a Layer 1 network that provides programming compatibility between disparate app chains, allowing them the flexibility to customize their execution environment as needed. This approach is reminiscent of how iOS operates as a unified platform for app development, hence the "iOS for web3" moniker.
The funding round brings Initia's total raised capital to $22.5 million, including previous investments from Delphi Ventures, HackVC, and Binance Labs. This investment also grants Theory Ventures a token warrant, giving it the right to purchase Initia's token should it be launched in the future. This token strategy is seen as a way to bootstrap open-source development and encourage a fruitful ecosystem around Initia.
Spencer Farrar, a partner at Theory Ventures, highlighted the unique strengths of Initia's founders, noting their deep technical expertise and ability to work collaboratively with developers. Some projects building on Initia are already using Move, an open-source programming language developed at Meta and used by blockchains like Aptos and Sui. This collaboration has been a significant selling point for Theory Ventures.
Initia is currently in its testnet phase, with eight projects already testing on the platform. The testnet has recorded over 125 million transactions and nearly three million unique wallets. The startup is gearing up for a mainnet launch within the next two months, a milestone that could significantly scale the multi-chain ecosystem.
Tomasz Tunguz, known for his successful SaaS investments at Redpoint Ventures and his popular startup blog, is optimistic about Initia's potential. He compared the scale of Ethereum, the second-largest blockchain network, to that of Snowflake, a cloud storage company, emphasizing the vast potential of next-generation databases and programming platforms. Theory Ventures is allocating its $230 million fund across roughly 12 startups, focusing on themes such as data, AI, and blockchain.
This investment underscores the continued attraction of web3 startups to mainstream venture capital firms, despite the volatility in cryptocurrency prices and public skepticism about the utility of blockchain beyond financial speculation. Initia's approach to interoperability and its developer-friendly ecosystem make it a promising player in the evolving web3 landscape.