Blockchain startup Nervos Network has announced it raised $28 million in a Series A funding round.
The company said on Wednesday major investors in the new round include token hedge fund Polychain and venture capital firm Sequoia China as well as several China-based blockchain startups such as wallet services Bixin and imToken.
Nervos said the new financing will be focused on expanding its product and engineering team in order to speed up the development process of its own enterprise blockchain infrastructure.
Co-founded by Jan Xie, a former ethereum foundation developer who authored the ruby implementation, the startup aims to create its own public blockchain network, also named as Nervos.
Taking a hybrid approach that combines a public blockchain with another layer of what it calls an "application chain," Nervos claims it will resolve the scalability and security issues simultaneously.
The startup said effectively the approach would allow companies to develop decentralized applications on top of a secure public network but run them in the application chain layer so that enterprises don't need to commit "their entire tech stack to the blockchain."
Xie said in the announcement:
"While there are undeniable benefits for enterprises that utilize blockchain technology to innovate and improve existing systems, enterprise adoption has been held back by a host of challenges like scalability, security, and complexity."
The new funding also marks the latest investment move of Sequoia China in the blockchain industry, following recent reports of the venture capital firm's participation in bitcoin mining giant bitmain's Series B round funding.
Earlier this year, Polychain also invested in a blockchain startup's $61 million funding round with venture capital giant Andreessen Horowitz.
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