Essential Raises $11 Million in Series A Funding

Essential, an “intent-centric” Ethereum Layer 2 blockchain developer, has raised $11 million in a Series A funding round led by Archetype.

Other investors included IOSG Ventures, the Spartan Group, Mirana Ventures, Amber Group, Maven 11, and Big Brain Holdings. Undisclosed angel investors from Celestia, Hashflow, LI.FI, Sorella, and other firms also participated.

Essential began raising funds for the Series A round earlier this year and closed it in June, co-founder and CEO Liesl Eichholz told The Block. The round was structured as equity with token warrants, and Eichholz declined to comment on the valuation.

This Series A round brings Essential’s total funding to $16.15 million, having raised $5.15 million in seed funding last September.

What is Essential?

Essential is a blockchain startup developing an intent-centric Ethereum Layer 2 network as an Optimistic rollup. Unlike traditional blockchains that use a transaction-based model (where users provide exact instructions), Essential employs an intent-based model (where users specify the desired outcome). As a Layer 2, Essential handles user intents off-chain using “specialized solvers” to make the process more efficient, aiming to improve user experience and enhance scalability.

Eichholz stated, “We don’t have direct competitors as we’re the first project to build a blockchain using the declarative approach.” The main competition consists of other Layer 2 projects focusing on speed, scalability, and user experience.

Essential Mainnet and Token Launch Timeline

Essential has launched Pint, its programming language for developing intent-centric blockchain applications, along with a pre-alpha devnet for testing and developer documentation as a quick-start guide.

Eichholz stated, “We’re aiming for testnet later in 2024 and mainnet in 2025.” Regarding the token launch alongside the mainnet, she confirmed it is part of the plan, contingent on various factors.

Currently, 12 individuals are part of Essential’s team globally, with Eichholz planning to recruit for additional roles, including head of growth and head of product.

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