Tools For Humanity, a developer of the Worldcoin project co-founded by Sam Altman of OpenAI, has raised $115 million in a Series C funding round led by Blockchain Capital. The funding includes participation from previous investors and new investors such as a16z crypto, Bain Capital Crypto, and Distributed Global.
Based in San Francisco, Tools For Humanity is focused on building tools to support Worldcoin, an Ethereum-based token currently in beta. The startup’s World ID platform aims to create unique digital identities for individuals by scanning their eyes with a small orb, utilizing blockchain technology.
The development of an identity platform based on eye scanning raises concerns about AI, data privacy, and security. While the platform could be beneficial in an era of increased AI reliance, the potential uses and implications of eye scanning technology have sparked debates and raised privacy concerns.
Worldcoin, with its goal of creating true unique digital identities, has also been associated with discussions around distributing a universal basic income as AI advances and potentially eliminates a significant number of jobs. This topic has also generated debates and differing opinions.
According to Alex Blania, CEO and co-founder of Tools for Humanity, the focus is on maintaining personal privacy while proving one’s humanness, ensuring that everyone can benefit from the financial advantages offered by AI.
The company did not disclose its valuation, but an earlier report suggested it was seeking a $3 billion valuation.
Despite Tools For Humanity’s successful fundraising, venture funding for most crypto and Web3 startups has experienced a significant decline. In the first quarter of this year, venture funding for VC-backed Web3 startups dropped by 82% compared to the same period in 2022, reaching a total of $1.7 billion. VC-backed crypto startups attracted just over $800 million in funding, the lowest amount since Q1 2020.