Fhenix, a developer of the Ethereum Layer 2 network with a focus on data confidentiality, has successfully raised $15 million in its Series A funding round. The round was led by Hack VC and saw participation from Dao5, Amber Group, Primitive Ventures, GSR, Collider Ventures, and Stake Capital. CEO and co-founder Guy Itzhaki revealed that the round began in March and concluded last month, but did not disclose any details about the round’s structure, valuation, or potential board seats.
With the completion of the Series A round, Fhenix has now secured a total funding of $22 million. In September of last year, the company raised $7 million in a seed round from Multicoin Capital and other investors. Itzhaki explained that the decision to increase the Series A round was due to the high level of interest from investors.
In addition to the funding announcement, Fhenix also introduced its open testnet called Helium. Initially known as Renaissance, Helium allows developers to implement “confidential” smart contracts on the Fhenix Layer 2 network for the first time. To ensure the privacy of the network, Fhenix utilizes fully homomorphic encryption (FHE) technology from Zama, a cryptography firm. This technology allows for end-to-end data encryption while the data is being processed. Zama’s FHE technology is also being used by other cryptocurrency projects, including the creators of the Shiba Inu memecoin and modular blockchain developer Inco.
Looking ahead, Itzhaki revealed that the Fhenix mainnet is scheduled to launch in the first quarter of next year. When asked about the possibility of introducing a token alongside the mainnet, Itzhaki chose not to provide an answer. Fhenix has established a grants program to attract developers to its testnet, although the scale of the program has yet to be determined. Itzhaki assured that it will be substantial given the Series A investment round.
Itzhaki emphasized that the Fhenix Layer 2 network represents the first phase of the project’s vision, with the ultimate goal of driving data confidentiality “everywhere.” Fhenix has recently partnered with EigenLayer to assist in the development of an FHE co-processor.