Saga raises additional $5 million in seed funding to boost expansion

Saga, a top Layer-1 protocol and developer ecosystem in web3, today announced the raise of its $5 million seed extension round led by Placeholder, a premier venture capital firm that invests in decentralized protocols and web3 services.

This investment marks the largest percentage stake in a pre-Layer-1 launch in Placeholder’s history. Additional investors in this latest round include Longhash Ventures, Com2uS, Dispersion Capital, Red Beard Ventures, Tykhe Ventures and AVID3, among others. To date, Saga has raised a total of $13.5 million.

Saga will continue its projected growth by expanding its team of cutting-edge technologists, ambitiously building its community and ecosystem activation via strategic partnerships, and growing its Saga Innovator Program.

In less than two years, Saga has 295 Innovator projects building on its protocol, and anticipates over 300 when the Saga Mainnet launches in early 2024. Additionally, Saga has cemented partnerships with flagship web3 projects including Polygon, Avalanche, and Celestia, positioning itself as a leader in web3 development.

Additional details can be found here.

Rebecca Liao, Co-founder and CEO of,Saga said the following;

Saga’s vision is to unblock developers from the high barriers to successfully building in web3. We’re thrilled to have Placeholder lead this round, as they, along with our other amazing investors, are helping to empower and accelerate our support of projects with the Integrated Stack – what developers have been waiting for to easily create consumer apps for broad adoption.”

Saga is the new generation of a base protocol in web3 – laser-focused on developer needs and committed to making blockspace plentiful and easy to access. For every rigid L1, block space has become synonymous with scarcity, resulting in high and fluctuating gas fees, congestion, and throughput constraints. The modular stack tries to fix these problems with crippling complexity: rollups, data availability, fraud proofs, and shared sequencers are all distinct components that have their own cost and performance issues. Saga’s Integrated Stack is the next breakthrough in web3.

Saga has just launched its Incentivized Testnet (ITN), called Pegasus. Pegasus recorded over 150,000 transaweekss in only two weeksnd created 30,000 wallets. Saga will be distributing tokens to Pegasus participants – and other community members outside the ITN – based on their performance in predefined quests.

Chris Burniske, Partner of Placeholder added;

“We expect blockchain architectures in the coming years to be much more reminiscent of cloud architectures, with Saga purpose-built to help usher in that future. On-demand blockspace provisioning, paired with cutting-edge validator orchestration, sets Saga up to provide blockspace as it’s needed in a horizontal, scale-out fashion akin to the cloud environments of today. The Saga team has roots going back to the earliest days of Cosmos, alongside power players in research, engineering, and politics, setting Saga up to lead a major movement within web3.”

The Saga protocol offers an integrated stack of automated, high-performance, gasless, interoperable, and customizable chains called Chainlets.

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