Bitcoin payments startup raises $2.5 million in pre-seed funding round. Arc Labs plans to bring seamless and scalable payments to Bitcoin. Billionaire investor Tim Draper led the round.
Startup Arc Labs said it raised $2.5 million in a pre-seed funding round led by billionaire investor Tim Draper.
Venture capital firm Draper Associates, Fulgur Ventures, Axiom Capital and angel investor Stephen Cole also participated in the round, Ark Labs. Said In a news release.
Arc Labs Launched in May With a plan to bring seamless and scalable payments to Bitcoin by developing and maintaining an open implementation of Layer 2 Arc Protocol.
“Ark's architecture enables seamless Bitcoin payments while adhering to the core principles of decentralization and self-custody,” said Draper, founder and managing partner of Draper Associates. Funded Tesla, Skype, and Hotmail, among others, are in the seed stage.
While the Lightning Network has made strides in improving Bitcoin's scalability, it still presents challenges for traders and non-technical users, according to the news release.
Arc solves this by offloading the complexities of transactions with Bitcoin to trusted servers called Arc Service Providers, allowing users to immediately start sending and receiving payments with just a wallet.
This eliminates the need for deep technical understanding or custodial solutions, making Bitcoin more accessible.
The company sees Arc becoming a go-to solution for consumer-facing payments and payments, while Lightning plays a leading role in enterprise applications, the release said.