Ethereum Layer 2 Network Scroll Closes $50M Funding Round with Polychain Capital Involved

Scroll, an Ethereum Layer 2 network that uses zk-rollups technology, closed a $50 million round of funding with participation from Polychain Capital, Sequoia China, Bain Capital Crypto, Moore Capital Management, Variant Fund, Newman Capital, IOSG Ventures, A&T Capital, and Qiming Ventures. The funds raised will be used to scale the team, develop products, launch the mainnet, and expand the ecosystem.

This round brings Scroll's valuation to $1.8 billion, according to sources. Scroll previously raised $33 million in two funding rounds and hadn't disclosed its valuation then. The new round brings Scroll's total funding to $83 million.

As a Layer 2 network, Scroll processes transactions off Ethereum on its own network and then ports the transaction data back to Ethereum — helping increase transaction speed and reduce costs. The mainnet is expected to launch in the next three to four months, Scroll co-founder Sandy Peng said.