# Compound Labs

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/compound-labs

- Industry: Internet
- Headquarters: San Francisco, US
- Website: www.compound.finance
- Total disclosed funding: $41M
- Latest round: Series A (Nov 14, 2019)
- Investors on record: 9

## About

Compound Labs, Inc. operates in the decentralized finance (DeFi) sector, specializing in lending and borrowing solutions for cryptocurrencies through an automated market-making protocol.Founded in 2017, Compound Labs, Inc. is based in San Francisco, US. The company provides a platform that enables users to lend and borrow cryptocurrencies using a unique protocol. It has raised a total of USD 33.10 mn in funding across four deals, with the latest being a Series A round on November 14, 2019, led by Andreessen Horowitz alongside Bain Capital, Paradigm Capital, and Polychain Capital. Geoffrey Hayes and Robert Leshner are the founders, while Jayson Hobby serves as the current CEO.Compound Finance specializes in decentralized finance (DeFi) products, focusing on enabling users to lend and borrow cryptocurrencies through an automated market-making protocol. The core offering, the Compound protocol, allows users to deposit various cryptocurrencies into liquidity pools and earn interest, while borrowers can take out loans against their crypto assets. The service primarily targets cryptocurrency enthusiasts, institutional investors, and platform developers. The company operates in global markets including North America, Europe, and Asia.Compound Finance generates revenue through a transaction model centered around interest rate spreads from lending and borrowing activities. Users earn interest on deposited assets, while borrowers pay interest on loans. The protocol charges a small fee for transactions, which is shared between liquidity providers and the platform. The pricing is dynamically adjusted based on supply and demand for each asset, allowing users to maximize returns or minimize borrowing costs.Following the Series A funding of USD 33.10 mn in November 2019, led by Andreessen Horowitz, Compound Labs, Inc. plans to expand its product offerings and improve its platform capabilities. The company is exploring the launch of new products in the DeFi space, aimed at enhancing user experience and accessibility. Additionally, Compound aims to expand into emerging markets in Asia and Europe by 2023, leveraging recent funding to enhance technology and market reach.

## Funding rounds

- Series A, Nov 14, 2019, $33M — Bain Capital, Paradigm Capital, Andreessen Horowitz, Polychain Capital
- Seed, May 16, 2018, $8.2M — Bain Capital, Transmedia Capital, Compound Ventures, Andreessen Horowitz, DHVC, Polychain Capital, Abstract Ventures, Coinbase Ventures

## Investors

- Bain Capital (https://capitalatlas.ai/funds/bain-capital) — Seed, Series A
- Transmedia Capital (https://capitalatlas.ai/funds/transmedia-capital) — Seed
- Compound Ventures (https://capitalatlas.ai/funds/compound-ventures) — Seed
- Andreessen Horowitz (https://capitalatlas.ai/funds/andreessen-horowitz) — Seed, Series A
- DHVC (https://capitalatlas.ai/funds/dhvc) — Seed
- Polychain Capital (https://capitalatlas.ai/funds/polychain-capital) — Seed, Series A
- Abstract Ventures (https://capitalatlas.ai/funds/abstract-ventures) — Seed
- Coinbase Ventures (https://capitalatlas.ai/funds/coinbase-ventures) — Seed
- Paradigm Capital — Series A