# Covalent Research and Development

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/covalent-research-and-development

- Industry: Software
- Headquarters: Vancouver, Canada
- Website: www.covalenthq.com/
- Latest round: Seed (Sep 10, 2020)
- Investors on record: 8

## About

Covalent Research and Development is focused on delivering data infrastructure for AI applications and decentralized organizations. Founded in 2018 in Vancouver, Canada, the company has engaged in 5 deals, with its most recent funding round occurring on March 24, 2021. The company raised USD 2.00 mn in a strategic investment round led by Hashed, with participation from Coinbase Ventures, Delphi Ventures, Hypersphere Ventures, Spark Digital Capital, and YZi Labs. The firm is led by CEO Ganesh Swami, who has previously founded other companies in the tech space. Covalent's primary product offerings center around a robust data infrastructure designed specifically for artificial intelligence (AI) applications and decentralized autonomous organizations (DAOs). The company's flagship product, the AI Agent SDK, enables developers to create intelligent agents capable of Chain-of-Thought (CoT) reasoning, facilitating complex task execution across various blockchain environments. Covalent supports over 100 blockchains, providing comprehensive structured data solutions that empower more than 70,000 developers globally. By enabling businesses to leverage on-chain data and smart contracts efficiently, Covalent aims to reduce operational inefficiencies while enhancing transparency in AI-driven crypto-native enterprises known as Zero-Employee Enterprises (ZEEs). The geographical markets served include North America, Europe, and Asia, where developers and organizations harness Covalent's technology to transform their operational capabilities. Covalent's revenue model primarily hinges on providing subscription-based access to its suite of data solutions, including the AI Agent SDK and data co-processor services. Clients, which consist of blockchain developers and organizations, engage with Covalent through tiered pricing plans that cater to varying levels of data usage and service integration. In a typical transaction, a developer or organization would subscribe to a specific pricing tier, gaining access to Covalent's comprehensive data infrastructure and tools necessary for building and deploying autonomous AI agents. The firm's transactional structure emphasizes partnerships with developers and businesses seeking to employ AI agents for operational efficiencies, ensuring ongoing revenue generation through these strategic collaborations. Covalent's services are designed to meet the specific needs of its clientele, tailoring the data solutions to enhance the efficacy of their blockchain applications. Covalent plans to leverage the funds raised in March 2021 to enhance its product offerings and expand its market reach. The company is designing new products to improve its AI Agent SDK and anticipates launching these updates by the end of 2023. Additionally, Covalent aims to enter new geographic markets, particularly in South America and Africa, by mid-2024 to further enhance its global presence and support a broader range of developers and organizations. The recent investment will be instrumental in supporting these growth initiatives.

## Funding rounds

- Seed, Sep 10, 2020 — Coinbase Ventures, 1kx Ventures, Mechanism Capital
- Angel, Jun 21, 2018 — ZhenFund, Node Capital, Metropolis Ventures, IOST, FBG Capital

## Investors

- ZhenFund (https://capitalatlas.ai/funds/zhenfund) — Angel
- Node Capital (https://capitalatlas.ai/funds/node-capital) — Angel
- Metropolis Ventures (https://capitalatlas.ai/funds/metropolis-ventures) — Angel
- IOST — Angel
- FBG Capital — Angel
- Coinbase Ventures (https://capitalatlas.ai/funds/coinbase-ventures) — Seed
- 1kx Ventures (https://capitalatlas.ai/funds/1kx-ventures) — Seed
- Mechanism Capital (https://capitalatlas.ai/funds/mechanism-capital) — Seed