• Proven, a developer of zero-knowledge (ZK) proofs, has raised $15.8 million in a seed round led by crypto-focused venture capital firm Framework Ventures.
• The proceeds will help Proven expand its team and scale infrastructure.
• Proven’s technology combines ZK proofs and quantitative solutions to prove solvency without publicly disclosing balance sheets or other sensitive data.
Crypto Startup Proven Raises $15.8M in Seed Round
Framework Ventures has led the seed round for Proven, which was founded by former employees of market maker Jane Street. The $15.8 million raise will help the firm expand its team and scale its infrastructure as it develops zero-knowledge (ZK) proofs that helps exchange and asset management clients prove their solvency.
What is Zero Knowledge Proof?
Zero knowledge proof is a type of cryptography that can prove something is true without compromising anonymity. With this technology, exchanges, stablecoin issuers, asset managers and custodians can show their assets and liabilities to potential customers, partners or regulators without needing to publicly disclose balance sheets or other sensitive data. This allows firms to efficiently foster trust while maintaining necessary privacy levels.
Proven’s Solution: Proof of Solvency
Proven has developed “Proof of Solvency,” which combines ZK proofs with quantitative solutions to provide these services securely and privately without disclosing confidential information to outsiders. This solution can be run daily for increased transparency.
Recent Examples of Insolvancy Issues
The fundraise comes after several headline-grabbing crypto collapses tied to insolvency issues including multibillion dollar centralized exchange FTX, highlighting the need for such services in the industry.
Use of Funds from Capital Raise
The capital raise will be used by Proven for expanding its team and scaling up its infrastructure with an aim to enhance customer trust while also protecting sensitive customer information from public disclosure