Cryptographic communication app Ephemera raises $20 million in Series B funding, valuing the company at $300 million.
In a significant move for the messaging industry, the crypto messaging startup Ephemera has secured $20 million in a Series B funding round. The fundraising, co-led by Union Square Ventures, A16z Crypto, and Lightspeed Faction, values the SocialFi platform at an impressive $300 million.
Ephemera, built by the developers behind the decentralized messaging network XMTP, is poised to offer a more open, secure, and user-owned alternative to centralized messaging platforms like Signal or WhatsApp.
The XMTP protocol, which leverages IETF-standard Messaging Layer Security, an open-source security foundation also used by tech giants such as Mozilla, Google, Wire, and Cisco, ensures enhanced privacy and security for users. With end-to-end encryption based on the Messaging Layer Security (MLS) standard, XMTP offers forward secrecy and post-compromise security, keeping messages private and secure.
One of the key advantages of XMTP is its openness and decentralization. As an open, permissionless, and decentralized messaging network, it doesn't rely on centralized servers controlled by a single entity. This means it operates without a centralized authority able to censor or revoke access. The protocol enables any developer to build messaging applications, fostering a decentralized ecosystem where communication is interoperable across apps, wallets, and blockchain identities.
Moreover, XMTP allows users to own their conversations, data, and identities through their blockchain wallets. This blockchain integration means users can retain control of their messages and identity independently of any app. XMTP also supports wallet-to-wallet messaging, making it chain-agnostic and interoperable across different blockchain ecosystems.
Fred Wilson, Union Square Ventures' CEO, argues that popular messaging apps like Signal or WhatsApp are too centralized. Despite end-to-end encryption, users do not own their messages and cannot transfer conversations off the platform. XMTP, on the other hand, allows users to prove privacy by cryptography itself, creating an open communication layer that aligns with Web3's decentralized ethos.
With user consent preferences, XMTP maintains spam-free inboxes, showing conversations only with chosen contacts. It's built on a censorship-resistant protocol that is architected to be permanent and accessible over time, unlike centralized platforms that might shut down or restrict access.
The fundraising for Ephemera was structured as equity with token warrants, and it also attracted participation from Coinbase, Sound Ventures, and actor Ashton Kutcher. Union Square Ventures' CEO, Fred Wilson, joined Ephemera's board as part of their co-leading role in the funding.
With this funding, Ephemera aims to continue developing and scaling its decentralized messaging network, providing users with a truly secure, open, and user-owned messaging experience.
In the rapidly evolving business landscape, Ephemera intends to utilize the $20 million Series B funding to advance its development and scaling of a decentralized messaging network, leveraging technology such as the XMTP protocol for secure, user-driven finance and investing opportunities in the burgeoning technology sector. As XMTP allows users to own their conversations, data, and identities, Ephemera presents an attractive proposition for those seeking open, secure, and user-owned alternatives in the finance, business, and technology sectors, offering an alternative to centralized platforms like Signal or WhatsApp.
