Rio Network secures seed funding with support from leading cryptocurrency investors.

quick take

Rio Development Inc., which backs Rio Network, has closed a seed funding round led by Polychain Capital, Blockchain Capital, and Breyer Capital. The Rio Network aims to redefine the Liquidity Re-Staking Token (LRT) and provide a user-friendly way to stake assets while maintaining liquidity. Led by seasoned founders and backed by renowned investors, Rio Network is poised to make waves in the cryptocurrency ecosystem.

Rio Network aims to revolutionize the Liquid Restake Tokens (LRT) space.

Rio Development Inc., the team behind Rio Network, today announced a significant leap forward in its journey by securing a seed funding round co-led by prominent crypto investors Polychain Capital, Blockchain Capital, and Breyer Capital. This funding round, backed by over 50 investors, marks a pivotal moment for Rio Network as it seeks to revolutionize the Liquid Restake Tokens (LRT) space.

Mission with a clear vision

Founded in 2023, Rio Development Inc. has set out a clear mission: to provide access to risk-managed rewards. Rio Network stands out in its sector by focusing on key areas including Actively Validated Services (AVS) selection and weighting, operator management, and efficient re-staking reward aggregation. This strategic approach will position the network to become a leader in the emerging light rail category.

Investor Trust and Strategic Partnerships

Alan Curtis, co-founder and CEO of Rio Development Inc. It represents the team’s meticulous approach to forming the ideal syndicate for this development phase. The selection of over 100 global investors was not just about funding, but also integrating these investors as core team members, contributing to research, business development and risk management.

“We met with more than 100 investors from around the world to select the most suitable syndicate for stages 0 to 1,” said Allen. We view each investor as a core team member “employed” to perform a specific task, including research, business development, and risk management.

He added, “In the emerging LRT category, we believe the approval of this syndicate sends a clear signal of category leadership to resellers, operators and Actively Validated Services (AVS).”

Bobby Beniers, Partner at Polychain Capital, highlighted LRT’s potential to maximize ecosystem rebuilding capabilities and praised the Rio team’s excellent approach to AVS risk management.

Spencer Bogart of Blockchain Capital emphasized his continued confidence in founding duo Alan and Brandon. Blockchain Capital, which has backed previous ventures including contributions to RADAR and Core Scientific, sees this investment as a “triple reduction” for a team with a proven track record.

Ted Breyer of Breyer Capital echoed this sentiment, citing Rio Network’s competitive advantage and potential in the industry.

Why does Blockchain Capital see Rio as the future?

Blockchain Capital’s investment in Rio Network stems from its belief in the transformative potential of LRT. They see LRT as an evolution of Liquid Stake Tokens (LSTs), giving users the ability to re-stake their assets while maintaining liquidity and utility. This trend has already seen significant growth in the liquid staking market, with leaders like Lido dominating the market share.

According to Blockchain Capital, the total addressable market (TAM) for re-staking is expected to be significant and could potentially quickly reach 11 figures. Due to the additional benefits of choosing AVS, the demand for LRT may exceed that for LST. With the ability to coordinate re-staking efficiently, Rio Network is positioned to capitalize on this rapidly growing market.

A Winning Combination: Market Opportunity and Execution

Blockchain Capital’s belief in Rio rests on two key factors: TAM and team. Lido’s success in the LST space demonstrates the viability of its business model and suggests that the success of LRTs depends on effective execution and risk management capabilities. This is where Alan and Brandon’s expertise comes into play.

Described as a “founder’s founder,” Alan brings a wealth of experience building and scaling companies, while Brandon’s deep understanding of crypto networks and risk assessment makes him a “crypto expert’s crypto expert.” Their combined skills and track record of success make them the ideal leaders for Rio Network’s ambitious goals.

Rio Network’s seed financing round is not just financial support, but a strategic alignment of expertise, confidence and vision. This marks a new phase in the liquid re-staking market, where Rio Network, led by an experienced and innovative team, seeks to become a dominant player. As the LRT market unfolds, Rio’s journey will be one to watch closely, potentially reshaping the cryptocurrency staking and re-staking landscape.

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