OpenLayer Raises $5 Million in Seed Funding

OpenLayer, a crypto-AI startup co-founded by three former Robinhood employees, has raised $5 million in a seed funding round.

Investors include:
– a16z Crypto Startup Accelerator (CSX)
– Geometry
– IOSG Ventures
– Spartan Group
– LongHash Ventures
– Undisclosed angel investors from various crypto projects, including EigenLayer, AltLayer, Puffer Finance, and Sei Network.

Yuchen Jiang, co-founder of OpenLayer, informed The Block that the fundraising process began in June and concluded in August. This round was structured as a simple agreement for future equity (SAFE).

Co-founders’ Background

Jiang, a former senior software engineer and tech lead at Robinhood, co-founded OpenLayer in 2023 with:
– Kevin Yin, a former senior product manager
– Chen Chen, a former engineering manager

Their experiences at Robinhood revealed the challenges of accessing data due to tight controls imposed by tech giants, motivating the formation of OpenLayer.

> Jiang stated: “Despite blockchain technology disrupting data silos on-chain, crucial data remains hidden within the walled gardens of web2 websites.”

He elaborated on how new social platforms struggle to compete without access to users' histories and how AI agents lack insights into user habits, restricting their ability to provide personalized services.

How OpenLayer Works

OpenLayer acts as an AI data layer, allowing users to contribute and validate data through a Chrome extension to earn points. Developers can access this user data with consent, thus maintaining privacy. Use cases include:
– Training AI models
– User targeting
– Enhanced features

> Jiang emphasized: “OpenLayer's developer platform enables access to web proofs of user data from various websites.”

Developers can verify user achievements, like completing tasks on Fiverr or trading profits, without permission from the original data source.

OpenLayer launched as an actively validated service (AVS) on EigenLayer, an Ethereum restaking protocol, where it has approximately 48,575 restakers and a restaked value of over $10 billion, making it one of the largest AVSs on EigenLayer.

Market Presence

Jiang mentioned that over a dozen firms across social networking, gaming, and AI sectors utilize OpenLayer for verified user data access. OpenLayer charges fees for data access but did not disclose specifics.

Looking ahead, OpenLayer plans to launch its own token in the future. The startup currently employs seven people and aims to hire two additional engineers.

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