Aurora: Dynamic Ethereum Protocol
A more affordable, higher-speed scaling solution for Web3 developers
Aurora was added to our portfolio in 2021 when we invested in a $12 million round alongside prominent blockchain-focused VCs, community founders, and influencers. We were impressed by the company’s innovative scaling solution, support from established blockchain investors, and traction in the high-potential Ethereum market. Aurora illustrates the types of Web3 innovators we strive to source for our investors.1
Turnkey Scaling Solution for Web3
A Layer-1 network is an infrastructure that provides users with decentralized, scalable, and secure use of blockchain protocols and applications. Due to significant technical requirements and energy usage, Layer-1 networks tend to be slow and expensive to operate. In response, blockchain developers have deployed Layer-2 protocols capable of operating networks on top of an underlying Layer-1 foundation, improving its efficiency, performance, and cost.
What is Aurora? NEAR’s Layer 2 Smart Contract
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Aurora has created a turnkey Layer-2 protocol scaling solution that provides developers with more affordable, higher-speed transactions and throughput. Aurora has designed its Layer-2 protocol to accommodate the speed and cost advantages projected with Web3, where transactions should be instantaneous and frictionless — similar to what consumers expect from today’s internet.
In November 2021, Aurora launched a Token Generation Event and made its Ethereum token ($AURORA) available to the public through various exchanges outside the U.S. AV Blockchain Fund 2 was awarded a token allocation proportional to the amount of its investment, which will be unlocked periodically over 2.5 years starting in May 2022. AV Blockchain Fund 2 has returned most of its initial investment to investors by selling less than 10% of the total token holdings awarded.2
What We Liked About Aurora
Aurora is well-positioned to expand its advanced solution on this improved infrastructure:3
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Extensive enhancements for Ethereum developers
Aurora offers a 50x increase in processing speed and up to 1,000x lower transaction fees than Ethereum. - Home
Innovative, dynamic technology
Aurora developed its protocol to accommodate horizontal scaling, which is designed to account for expanded user demands without the need for additional code. - Home
Significant interest from seasoned investors
Aurora’s first funding round was oversubscribed and attracted capital from 18 VCs and 70+ Ethereum developers. Investors included well-regarded blockchain-focused funds that Alumni Ventures has co-invested with on other opportunities.
Our Co-Investors
Alumni Ventures invested in Aurora’s $12 million round in 2021 alongside Pantera Capital, Electric Capital, and Dragonfly Capital, as well as 10+ other VCs and 70+ community founders and influencers.
Although the round was oversubscribed, our Blockchain Fund team was able to secure an allocation through a relationship with Pantera. A core pillar of our blockchain investment strategy is partnering with other established VCs to support innovative companies working to unlock the full potential of Web3 infrastructure and services, the Metaverse, and more.4
AV’s investment team was impressed by the round dynamics and syndicate:
Pantera Capital describes itself as the “first U.S. institutional asset manager focused exclusively on blockchain technology.” The firm manages $3.7 billion in blockchain-related assets and invests in projects advancing the core infrastructure of the blockchain ecosystem.
Electric Capital is an early-stage VC firm supporting the future of Web3, with a focus on blockchain, fintech, and marketplaces. In March 2022, the firm announced that it had raised $1 billion across two funds to invest in startups and tokens
Dragonfly Capital is a global VC firm that invests in disruptive companies advancing the decentralized economy. In April 2022, the firm announced that it had raised $650 million for its oversubscribed third fund, attracting capital from Tiger Global, Sequoia China, Ivy League endowments, Invesco, Top Tier Capital Partners, and others.
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Contact [email protected] for additional information. To see additional risk factors and investment considerations, visit av-funds.com/disclosures.
1These investments are for illustration purposes only. These investments are not intended to suggest any level of investment returns; not necessarily indicative of investments invested by any one fund or investor. Many returns in investments result in the loss of capital invested. These investments are not available to future fund investors except potentially in certain follow-on investment options.
2The outcomes produced by previous sales of Aurora constitute past performance. Past performance does not guarantee future results, which may be materially different, and future investors in any fund holding Aurora, and/or investors in future funds that may hold Aurora or other cryptocurrencies, will not experience the past performance described herein. AV will provide the total performance of the funds involved in the previous sales of Aurora promptly upon request.
3Unless otherwise indicated, the information contained herein was provided by the portfolio company and Alumni Ventures is not responsible for errors made in the presentation or analysis of data pertaining to the portfolio company. All forward-looking statements involve assumptions, uncertainties, and risks, and actual results could differ materially.
4Co-investors listed are for illustration purposes only. These co-investors are some that AV has historically co-invested with and is not a predictor of future co-investors for any given portfolio company. There is no guarantee of who will be the co-investors in any given investment and these investments are not intended to suggest any level of investment returns; not necessarily indicative of investments invested by any one fund or investor. Many returns in investments result in the loss of capital invested.