Wireless internet provider Andrena has secured $18 million in a funding round spearheaded by Dragonfly, with the aim of developing a protocol for decentralised broadband.
This protocol, known as decentralised autonomous wireless network (DAWN), is part of a decentralised physical infrastructure network (DePIN), designed to deliver internet to homes without the need for centralised service providers.
DePIN represents physical infrastructure networks constructed using blockchain technology and token-based incentives, allowing other projects to leverage the network without the necessity of purchasing and maintaining their own equipment.
DePIN can be viewed as a decentralised counterpart to services like Amazon Web Services (AWS) or Google Cloud.
The funding round also attracted other investors, including CMT Digital, Castle Island Ventures, Wintermute Ventures, 6th Man Ventures, and ParaFi.
Structured as a Series A extension round, it was formulated as a Simple Agreement for Future Equity (SAFE) with token warrants, according to Andrena's co-founder and CEO, Neil Chatterjee.
The round was described as "significantly oversubscribed," with Andrena originally seeking $5 million but ultimately raising a higher amount in multiple tranches earlier this year to adequately prepare for the Token Generation Event (TGE).
The purpose of the funding round is to finalise the development of DAWN's protocol and smart contracts.
This Series A extension brings Andrena's total funding to $38 million, as reported by Chatterjee.
He declined to provide details on the company's valuation or whether any investors have acquired board seats.
Last year, Andrena raised an additional $15 million in a Series A round, which was also led by Dragonfly.
Andrena is in the process of developing DAWN, a DePIN protocol built on the Solana blockchain, which is designed to deliver decentralised internet services.
Chatterjee said:
"DAWN has been in the works since the fall of last year, DAWN aims to do to the internet what solar panels did to electricity. The same way consumers own and generate their own utility and sell their excess back to the grid, there is now an opportunity to do the same with wireless home and business Internet."
In collaboration with Pramod Viswanath, a professor at Princeton University, Andrena has implemented "proof of backhaul" within DAWN.
This mechanism ensures that each node within the network maintains a functional connection to the broader internet.
Chatterjee explained that Viswanath was instrumental in developing the algorithm for proof of backhaul, which is a critical element of DAWN's trustless system.
Viswanath is also a core contributor to Sentient, an open-source AI development platform, alongside Sandeep Nailwal, co-founder of Polygon, and other esteemed individuals.
If successful, DAWN will empower customers to utilise wireless base stations installed on rooftops, which collectively form a mesh network for internet access, eliminating the need for a centralised provider.
By avoiding the installation of wiring, Andrena claims it can offer its decentralised broadband service at a more competitive price than traditional providers.
In addition to its physical infrastructure, DePIN leverages blockchain technology to facilitate token-based incentives.
Once Andrena rolls out this functionality to its customers, they will have the ability to purchase tokens through a mobile app and then exchange these tokens for internet bandwidth from the network.
The mobile app will interface with a home hardware device equipped with an antenna, which will both receive and share internet access.
Customers will also have the opportunity to earn tokens as rewards for maintaining their connection to the decentralised broadband network, referring friends, and participating as a validator.
For instance, each 24-hour period of continuous connection qualifies for 1,440 reward points, as stated on DAWN's website.
Andrena's business model is distinctive in that it does not require customers to purchase equipment.
Chatterjee noted:
“We wanted to create a system that runs itself. You can activate it purely through software. You don't have to roll a truck.”
Instead, Andrena has developed access points that support the decentralised broadband service, which are then shared among residents.
He explained:
“There is no equipment in the individual unit. It's like another utility.”
For those requiring wired connectivity, Andrena can provide a device to convert the wireless signal to a wired one, although Chatterjee noted that "95% of customers only need wireless."
At its launch, DAWN's wireless network is expected to cover over 3 million households in the US, with ambitious plans to expand its reach globally, including regions such as Asia, Europe, and Latin America, as mentioned by Chatterjee.
Currently, DAWN is operating on a testnet and is slated to be deployed on the Solana blockchain.
While Chatterjee did not disclose specific timelines for the mainnet and token launch, the project's progress is eagerly anticipated.
According to its whitepaper, the anticipated initial token allocation is listed below:
Andrena, the developer of a Solana-based DePIN protocol, is at the forefront of providing decentralised internet services with DAWN.
The protocol is designed to revolutionise internet access in a manner akin to how solar panels democratised electricity production, empowering consumers to own, generate, and sell their own internet service.
In a landscape where data trading is dominated by large data centers, DAWN seeks to redistribute power directly to the homes of users.
To achieve this, it aims to transform the internet into a commodity that can be produced and sold by anyone.
Consider this in the context of the fact that 52% of Americans have only a single option for high-speed internet service.
DAWN can be likened to a decentralised counterpart of AWS or Google Cloud, employing airdrop incentives of digital tokens.
However, unlike traditional web2 networks, DAWN integrates with blockchain technology to create a fully trustless environment.
This ensures the transparency of certain empirical processes through a unique "proof of backhaul" mechanism, which assesses the processing capability of each node.
As noted on Andrena's website: with regard to its beginnings:
“Andrena was founded in 2017 after years of frustration with Big Internet. We believe that Internet access is a fundamental human right, like access to clean water and air. It might sound silly, but it's real. Today, Andrena is a wireless Internet company on a mission to revolutionize the way people access the World Wide Web. We provide Home Internet services at a fraction of the cost and with an innovative method of delivery, making connectivity more accessible, affordable, and usable than ever before. As we continue to grow, we remain committed to our original vision: to break down barriers, empower individuals, and help shape a more connected and equitable future for all. We are driven by a deep love for the Internet and an unwavering belief in its power to transform lives. People should have options for their elemental needs.”
The company intends to transition its existing customer base and revenue streams to the blockchain, beginning with the upcoming token launch, the date of which is yet to be determined.
Neil Chatterjee, CEO
Chatterjee is the CEO of Andrena, bringing a wealth of experience from his previous role as VP of Engineering at Dentboard from January 2014 to December 2016.
His academic journey began at West Orange High School, followed by advanced studies in electrical engineering at Princeton University, the New Jersey Institute of Technology, and Montclair State University.
James Smits, Co-Founder & CPO
Smits is a Co-Founder and Chief Product Officer at Andrena.
He previously served as Partner at Tigerlabs Health and has held venture partner roles at KohFounders and Beta Bridge Capital.
Additionally, he is an Advisor at Socialblood.
His prior experience includes working as a Business Development Associate at Banyan Water, where he focused on expanding the Capital Markets Division, exploring mergers and acquisitions, and facilitating post-merger integration.
He also served as an Honorary Fellow at the University of Melbourne, analysing Australian water trading markets, and as a Research Assistant at Princeton University's Civil and Environmental Engineering Department.
Smits holds a BA in Economics and Environmental Studies from Princeton University and has certifications from the Melbourne Cricket Club and OSHA Safety Training Institute.
Andrena's Socials
Coinlive feels that Andrena's vision for DAWN, which is to transform the Internet from a provider-owned model to a consumer-owned model, is a big leap into bettering lives.
Although specific timelines for the mainnet and token launch have not been divulged, and the company's valuation or whether any investors have acquired board seats were not disclosed of the recent funding, the project's progress is eagerly anticipated.
In addition to its credibility, since the launch of its testnet last week, DAWN has crossed over 100,000 verified users.
Scammers have developed a new tactic to defraud Solana users by burning their tokens seconds after purchase, using a Solana token extension to secretly erase crypto holdings. While the motives vary, the result is consistent: users lose their assets.
CatherineThis week, 19 blockchain startups received $85.1 million in funding. The largest round of funding was Andrena, which raised $18 million in a Series A round; 12 projects received Series A funding, and 6 projects received other rounds of investment.
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