Dynamic, a Web3 startup working on wallet-based authentication and authorization tools for developers, has recently closed $7.5 million in seed investment in a funding round led by Andreesen Horowitz (a16z). The seed round also saw the participation of Castle Island Ventures, Solana Ventures, Circle Ventures, Breyer Capital, Hypersphere, and Chapter One.
The startup’s work on wallet-based authentication and a suite of authorization tools can be seen as a moved towards becoming a pioneer in the Web3 space. Specifically, the firm has been variably called as the “Auth0 for web3,” according to Yoni Goldberg, co-founder of Dynamic. The comparison is made with Auth0, a leading brand in the web2 authentication space which was recently acquired by Okta, an identity software development firm. The acquisition deal was worth $6.5 billion.
What this means is that Dynamic’s authentication and authorization tools will enable developers to manage crypto wallets in a more secure way and also help them comply with new regulatory frameworks. The firm is currently being lauded for its work in the crypto space, and with this latest investment round, it is looking to expand its reach and impact. With this injection of fresh capital, Dynamic plans to accelerate the development of its product suite and increase its go-to-market efforts. The startup will also use the funds to build out its team, which currently stands at 8 people.
As with Dynamic, Auth0 also provides authentication and authorization tools, but is specifically targeted towards developers building on web2. This difference is largely based on the infrastructure. Dynamic focuses on web3 authentication, doing away with email addresses and passwords, and instead seeking an implementation based on crypto wallets and their private keys which users hold.
Dynamic started its work sometime in December 2021, co-founded by Goldberg and Itai Turbahn. The two have been working with each other for over 15 years across several organizations such as the Israel Defense Forces and Juul Labs. While Goldberg and Turbahn are newcomers in the crypto space as co-founders, they have been exposed to crypto since at least 2012.
“We really fundamentally believe that everyone will have a wallet on their phone or computer in the next five years,” said Turbahn. “The speed at which wallets will be integrated into someone’s daily lives will increase exponentially. So we’re prepping for that world.”
Dynamic’s services are aimed at a number of different startups and companies, including those that are working within the web2 space. The firm currently has Llama, Popartcats, Handstamp, and Lunchclub as alpha clients, with the platform now released in a closed beta stage. General availability for the services are slated for Q4 2022.
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Source: https://cryptodaily.co.uk/2022/06/a16z-leads-7-5m-seed-round-for-web3-authentication-startup-dynamic