Tenderly, a startup that aims to facilitate for web3 developers “of all skill sets” to build blockchain products, raised $40 million in a Series B funding round – just months after closing its A-Series
Funding is another example of the rapid succession of funding cycles in the blockchain infrastructure space – and the fintech space in general. Earlier this month, TechCrunch also reported that Alchemy had raised a $200 million extension to its Series C at a valuation of $10.2 billion. This society aims to be the starting point for developers considering building a product on top of a blockchain or mainstream blockchain applications.
Although both are similar development tools for building decentralized applications, the main difference between the two companies is that Alchemy provides a node as a service while Tenderly is a platform designed for developing, testing and monitor the health of decentralized applications with its dashboard and API, the company maintains. It is said to be more focused on smart contracts.
“Tens of thousands” of app developers such as Uniswap, Yearn Finance, Circle, Chainlink, Gnosis, Nexus Mutual, Instadapp, DeFi Saver and NFT marketplace (and decacorn) OpenSea use Tenderly to monitor app and contract health smart. In fact, the company says it works with the majority of 100 best Ethereum projects.
Belgrade, based in Serbia Tenderly was founded in 2018 by friends Andrej Bencic (CEO), Bogdan Habic (CTO), Miljan Tekic (COO) and Nebojsa Urosevic (Blockchain Architect) after years of working on the front lines of software development and being frustrated with what which they said were non-existent tools.
The quartet say they recognized early on the incredible potential of blockchain to become the internet’s next fundamental standard, but also realized that for that to happen, the technology had to be accessible to everyone.
“We started Tenderly as four engineers hyper-focused on one particular technology, which was blockchain and ethereum,” Bencic said.
The group started building the tools for themselves – initially for debugging – but now Tenderly has grown into a development platform that processes more than 25 million transactions daily through its virtual machine (VM). It now covers a whole range of blockchains such as Ethereum, Avalanche, Fantom, Optimism and Arbitrum.
“We’ve worked closely with the wider community to create a system of tools, services, and frameworks to help developers deliver better products fast,” Bencic said. “Now we take care of developers at every stage of development – from develop the smart contracts, test them in pre-production, help them with the supporting infrastructure and in production as well.
Although it declined to reveal concrete revenue figures, the company saw a 500% increase in revenue and a 420% increase in users year-over-year, although she doesn’t have the “appropriate expertise in the sales department,” according to Bencic, who credits a “deep connection” with her user base for Tenderly’s success so far.
“We’re still primarily a product and engineering team, but we hope to fix that in the coming year,” he said.
The current volatility in the crypto space has not impacted its growth, he argues.
“If anything, we’re seeing that developers are more committed to exploring the Web3 space in general,” Bencic added.
Spark Capital led the latest round of the startup, which is opening an office in San Francisco. Existing backers Accel (which led its Series A) and Point Nine Capital (which led its seed round) also participated, along with Abstract Ventures, Coinbase Ventures, Uniswap, Daedalus, CEO of Vercel Guillermo Rauch, Co-founder and CEO of Optimism Jinglan Wang, Eric Ries, Founder of Long-Term Stock Exchange and Tihomir Bajic, CEO of LTSE Software.
The company plans to use its new capital to continue expanding its product offerings, acquiring customers and partnerships, and hiring technical and sales talent.
Spark Capital’s general partner, Yasmin Razavi, who led the funding, believes that the Tenderly product suite “will significantly lower the barriers to development in web3 and increasingly empower developers throughout the build journey: from testing to deployment to monitoring”.
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Note: Title and text changed after publication from 500x to 500%.