Pact Closes Seed Round at $2.1m

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Pact Closes Seed Round at $2.1m

Published on:
August 31, 2021
Written by:
Pact team
Breaking news

Pact is extremely proud to confirm the details of the now closed seed raise of $2.1m, at a $20m valuation. This round was significantly oversubscribed, and the high demand shown by investors reflects their long term belief in the Pact team, roadmap and platform — which will go a long way to making Pact the Automated Market Maker (AMM) of choice.

Led by investment from two of the ecosystem’s largest and most reputable firms in Hivemind and Borderless Capital, it was extremely validating for Pact to form critical strategic partnerships from both established incumbents and newer entrants into the Algorand ecosystem. Hivemind’s recently launched $1.5B mega-fund has been extremely selective in establishing partnerships, which is a proud situation for the Pact team. We are particularly honoured that Hivemind has uniquely chosen Pact as the first AMM on Algorand to support.

“We are excited to support Pact and confident in the team’s technical capability and ability to deliver, which was recently evidenced in the stellar audit report published by Runtime Verification auditors” said Matt Zhang, Managing Partner of Hivemind. “We look forward to working with the Pact team to build out a programmable financial ecosystem on the Algorand network.”

Also of critical importance was receiving the backing of Algorand stalwart figureheads, Borderless Capital, who recently announced they would be doubling down in support of the ecosystem with the $500M Algo Fund II, focused on DeFi growth. “We’re very proud to join Pact as a co-lead investor in this round,” said Managing Partner David Garcia. “AMMs are an integral component of any DeFi economy and leveraging the Algorand blockchain, and Pact is bringing one of the most user-friendly instances to market”.

In addition to the leads, Pact was pleased to have been able to partner with a wide and varied range of sources of funds within the community — which included traditional VCs, DAOs, CEX incubators, trading firms and strategic angel-tickets. The full breakdown includes Meld Ventures, CMS, Orthogonal Trading, MXC, Daovergence (DVG), Dao Jones, 0x Ventures, Valhalla Capital, Ellipti, Elves Long Term Capital, Parea Capital and Algopulse.

We’re particularly grateful for the ongoing support we continue to receive from both Algorand Inc and the Algorand Foundation. It’s also pleasing to be able to partner with community-led entities like the newly formed Parea Capital, who have a mission to “invest in the enrichment and growth of the Algorand ecosystem”, as well as other angel investor tickets from the likes of Natalie Salemink (Founder, Prismatic).

With the seed round now concluded, it’s all systems go for Pact after the mainnet launch on February 22nd. In a first for the Algorand blockchain, liquidity providers using the Pact AMM will get 100% of liquidity pool fees they accumulate back, a great incentive post-launch.