Polygon Co-founder Says Project Could Have Easily Raised $650M, but Settled for Less

Earlier this week, Polygon Technology, the India-based company that designed Ethereum’s side-chain scaling solution, Polygon, announced that it had raised $450 million in a funding round.

But Sandeep Nailwal, the co-founder of Polygon, revealed today that they could have easily raised $650 million in the recently concluded funding round but decided not to.

“We had to stop at $450 million. If we wanted to, we could have raised another $200 million, but since some very good investors came in, we said ok let’s take them,” he told local media Moneycontrol in an interview published today.

When he was asked why the company decided to stop at $450 million, Nailwal replied, saying,

“Already there’s a certain amount of dilution that we want to do and not beyond that. Apart from that, why do we even need that much money?…This was already enough money and we did not need more.”

The Polygon co-founder added that the generated capital is enough to secure a 3-5 year runway, for polygon’s 7-8 product lines that are available, “…plus a $100 million ecosystem fund, and then some buffer for the treasury.”

“Marquee Investors” Still Evaluating Polygon

Nailwal also mentioned that some high-profile investors are checking out Polygon and are yet to decide whether or not they should invest in the company.

“… there are more marquee investors who are evaluating Polygon,” he said in the interview, before specifying that the startup may organize another funding round if it becomes necessary in the future.

$450M Funding Fuels MATIC’s Price

Following the announcement about Polygon’s funding round , MATIC, its native token, recorded a significant 18% increase in its price on the due-day. It closed the day with $2.02 per coin.

This was expected because the recent funding development by Polygon is the first of its kind for the company.

Before now, Polygon issued MATIC tokens to raise capital to fund its products.  Things however changed earlier this week as Polygon had Sequoia Capital India, Softbank, Galaxy digital and 36 other institutional and individual investors participate in its fundraising.