Etherealize, a next-generation Ethereum infrastructure company, has successfully raised $40 million in fresh funding. The round was backed by leading investors Electric Capital and Paradigm, underscoring the growing demand for scalable blockchain infrastructure as decentralized finance and Web3 applications continue to gain mainstream traction.

The funding marks a major milestone for the startup, founded by Vivek Raman, Danny Ryan, Grant Hummer, and Zach Obront, who share a vision of accelerating Ethereum’s scalability and usability. Etherealize is focused on solving one of the most pressing challenges in blockchain: enabling Ethereum to support billions of users and transactions without compromising security or decentralization.

Building the Next Layer of Ethereum

Etherealize is positioning itself at the forefront of Ethereum’s evolution by developing solutions that streamline transaction throughput, reduce costs, and improve developer access to scalable infrastructure. By tackling scalability and user experience simultaneously, the company is creating the kind of technical foundation necessary for Ethereum to power global financial applications, decentralized identity systems, and large-scale enterprise use cases.

Ethereum, despite being the most widely adopted smart contract platform, has long faced bottlenecks around high gas fees and limited throughput. Etherealize aims to address these bottlenecks through innovations in layer-two scaling, decentralized validation systems, and network optimization tools. The company is not only building core infrastructure but also actively collaborating with the Ethereum ecosystem to ensure its solutions integrate seamlessly with existing protocols.

The real breakthrough here lies not just in engineering but in strategic positioning. Too many startups chase “moonshot” technology without ensuring adoption paths are clear. Etherealize has deliberately aligned its product development with Ethereum’s current adoption curve, meaning they are building solutions exactly when the market needs them most. For founders, this is a crucial takeaway: timing capital raises and product readiness to coincide with industry inflection points often matters more than the raw pace of innovation itself. A company with slightly less advanced technology but perfect market timing can outscale a technically superior competitor who launches too early or too late. Etherealize’s raise demonstrates that pairing momentum with funding is often the multiplier that transforms a strong idea into a category-defining business.

Backing From World-Class Investors

The involvement of Electric Capital and Paradigm highlights the credibility and potential of Etherealize’s mission. Both firms have built reputations as top-tier investors in crypto and Web3 infrastructure, backing some of the most significant players in the space. Their support not only provides financial capital but also deep domain expertise, technical networks, and strategic partnerships.

Paradigm, in particular, has been instrumental in supporting breakthrough blockchain projects, while Electric Capital’s research-driven approach to crypto investment ensures Etherealize benefits from long-term guidance. With this caliber of backing, Etherealize gains not just runway, but also alignment with investors who understand the unique cycles and challenges of Web3 development.

Scaling for the Future of Web3

With the $40 million raise, Etherealize plans to expand its engineering team, accelerate product development, and strengthen its infrastructure deployment across multiple regions. The company’s roadmap includes further enhancements to Ethereum scalability, developer tooling, and integrations that make it easier for enterprises and consumer applications to build on Ethereum.

By creating solutions that reduce friction for developers and users alike, Etherealize is setting itself up as a key enabler of the next phase of Web3. Whether it’s enabling decentralized finance protocols to handle millions of transactions per second or powering consumer-facing apps with seamless blockchain integration, the company’s work will directly impact how Ethereum is adopted worldwide.

The Road Ahead

Etherealize’s raise signals confidence not only in its founders and technology but also in the broader thesis that Ethereum will remain the backbone of decentralized applications. While competition among blockchain ecosystems continues, Ethereum’s developer community, security guarantees, and network effects give it a unique position. Etherealize’s mission is to strengthen those advantages by ensuring scalability keeps pace with adoption.

As Web3 continues to mature, the companies building foundational infrastructure will determine how fast and effectively blockchain moves into mainstream life. Etherealize, armed with fresh funding and visionary backers, is positioning itself to be one of those companies.With $40 million in new capital, investor support from Electric Capital and Paradigm, and a team deeply embedded in the Ethereum community, Etherealize is not just building infrastructure - it is shaping the backbone of the decentralized future.