Props secures new financing led by Union Square Ventures and Borderless Capital; PropsChain to run on Algorand Platform
Funding and infrastructure upgrade to support Props’ growth beyond its 3M users
We’re excited to share that we concluded a ~$2M* token-sale financing by a number of funds and strategic partners led by Union Square Ventures (USV) and Borderless Capital, with participation from GSR, Lvna Capital, SPiCE VC, CoinFund, the Dating.com Group and others. We will use the capital to continue to scale the Props user network through integrations by additional consumer apps, and to evolve our infrastructure, including a transition of PropsChain from the current Hyperledger implementation to the Algorand blockchain. Props tokens and smart contracts will remain on Ethereum.
The strategic partnerships formed in this financing position Props well on our mission to bring one of crypto’s killer features — enabling users to share in the wealth generated on the networks they help grow — to mainstream apps.
The financing comes in light of meaningful growth for Props to 3 million users (up from 1 million users in January), as more apps join the Props network. Apps integrate Props Tokens to grow engagement of their users, and better align with them. Props removes the technical and regulatory complexity traditionally associated with integrating blockchain-based tokens into mobile apps and websites through a set of APIs that apps can easily use to make the token experience seamless for users. The token can be used across the network’s apps. We expect to grow to 5 million Props Token users following the upcoming Props launch in two additional consumer apps, Listia and Paltalk. Listia is a P2P marketplace for used goods, and Paltalk is a chat app that is set to become the largest app to integrate the Props Token to date.
PropsChain moving to Algorand
To support the growing volume of activity on our sidechain (PropsChain) and provide greater transparency to network participants and the market, PropsChain will be moving to Algorand. Algorand’s public chain will increase Props’ speed and reliability, while powering more transaction volume and providing a higher level of security. This is a long-term partnership that will allow Props and Algorand to further collaborate on transitioning more Props technology elements onto the Algorand blockchain in the future.
Strategic partnerships for Props
We are very grateful, at a time of unprecedented turmoil and uncertainty, to continue to benefit from the support of some of the world’s best investors and prominent strategic partners.
USV, one of the world’s most successful venture capital firms and a prominent crypto advocate, has been a long time backer of ours. We are fortunate to continue to benefit from their support, insights and network. Over the last two years we worked very closely with USV Partner, Nick Grossman, one of the most thoughtful investors in the space. Nick has deep knowledge of crypto network design, governance and regulation (check out Nick’s fantastic blog, covering crypto, tech investing, life hacks and more). We are excited to have Nick join our board. We are also grateful for the continued backing from the amazing team at CoinFund, who have been instrumental in bringing Props to market.
The rigor and conviction that David Garcia, Arul Murugan and the rest of the Borderless Capital team demonstrated around Props have been energizing and contagious. This team of ex-entrepreneurs has a deep understanding of crypto economics, capital markets & liquidity, building category-leading businesses and an incredible network of key crypto and blockchain players in Asia, Europe, Latin America and the US. We’ve been working closely with David and the team, and look forward to collaborating with them and others in the Algorand ecosystem.
Other strategic investors in this financing round include GSR, the liquidity and market making firm, Lvna Capital, a VC affiliated with a large international crypto exchange, SPiCE VC and others who are set to support Props in preparation for a future token listing. Owners of apps currently running Props, having experienced Props Tokens’ benefits for their businesses, invested in this financing to further grow their holding in the network. Notably, an investment affiliate of the Dating.com Group, a conglomerate of 15 international dating apps with 73M registered users, invested in Props. The Dating.com Group has announced plans to implement Props into its apps.
We are excited to continue on our journey to build a new way for users to obtain a financial stake in online networks, with the current growth momentum and new partners on our side. Visit our careers page to join our team!
*See details of the financing in the Props Offering Circular Supplement at https://www.sec.gov/Archives/edgar/data/1725129/000121390020010207/ea121113-253g2_younow.htm
