Mezo, a Bitcoin (BTC) layer-2 (L2) network, has come out of stealth mode with $21 million in venture capital. Pantera Capital led the funding round, with Multicoin, Hack VC, ParaFi Capital, Nascent, Draper Associates, Primitive Ventures, and Asymmetric Ventures also participating. Individual investors, including Dan Held, Tim Draper, and the pseudonymous DCF God, joined in too.
Thesis, a blockchain venture studio that created Mezo, confirmed the fundraising earlier this week. Mezo operates as a permissionless Bitcoin economic layer, using a neutral smart contract framework for various applications.
It’s part of the recent surge of Bitcoin L2 networks aiming to go beyond just trading. Notable counterparts include Babylon and Stacks, which focus on features like staking for Bitcoin users.
Thesis initiated the fundraising campaign for Mezo in December 2023, leading to the $21 million round closure. Mezo operates as a “permissionless Bitcoin economic layer,” utilizing a neutral smart contract infrastructure to facilitate various user applications.
The platform’s goal is to improve Bitcoin’s infrastructure, enabling cost-effective and quick transactions across various domains, fostering a dynamic circular economy.
One standout feature of Mezo is its “Proof of HODL” points program, incentivizing users to actively engage with their Bitcoin holdings on the platform. Thesis CEO and Mezo founder Matt Luongo highlighted that Mezo aims to turn Bitcoin holdings from idle assets into actively engaged assets within the network, rewarding users for enhancing network security.
The platform will introduce a Bitcoin-backed Ethereum (ETH) token, tBTC, allowing users to participate in Ethereum’s decentralized finance (DeFi) ecosystem while holding Bitcoin. Following the successful funding round, Mezo has reported a total value locked (TVL) of over $75 million with more than a thousand active addresses.
This funding for Mezo coincides with renewed interest from venture capitalists in the crypto space. In the first three months of 2024, global investors poured $2.5 billion into startups, according to PitchBook.
