According to Fortune, the Stripe and Paradigm-backed blockchain project Tempo has made its first major investment by leading a $25 million funding round for crypto infrastructure company Commonware. The deal involves Tempo working with Commonware to develop faster blockchain payment processing methods. Commonware founder Patrick O’Grady declined to name other investors but confirmed the valuation saw a “significant increase” from its reported $63 million seed round. Tempo has been aggressively expanding since its September launch, acquiring crypto startup Ithaca and hiring Ethereum researcher Dankrad Feist while growing from 5 to 40-50 employees. The startup has raised $500 million at a $5 billion valuation from top VCs including Thrive Capital and Sequoia.
Tempo hits the ground running
Here’s the thing about Tempo – they’re not wasting any time. Most startups would be focused on building their core product in the first few months. But Tempo? They’re out here making acquisitions, poaching top talent, and now leading funding rounds. When you’ve got Stripe and Paradigm backing you, plus half a billion dollars in the bank, I guess you can afford to move fast.
What’s really interesting is the strategic nature of this investment. They’re not just throwing money at a random crypto project – they’re partnering with Commonware specifically to improve payment processing speeds. That tells you exactly where Tempo’s priorities lie. They’re building a payments-focused blockchain, and they’re willing to invest in the infrastructure to make it work better.
Commonware’s unusual position
Now let’s talk about Commonware, because their situation is pretty unique. They’ve only got seven employees and four customers, but they’re already profitable? That’s practically unheard of in crypto infrastructure. Each customer generates over $1 million in annual revenue, which suggests they’re serving some serious enterprise clients.
O’Grady’s comment about “usage and distribution being more important than money” reveals an interesting strategy. Basically, they’re choosing strategic partnerships over traditional VC funding. When you can partner with a Stripe-backed project that has connections to Ethereum heavyweights and major tech companies, that’s probably smarter than just taking more cash from random investors.
Big backing, big expectations
The sheer scale of Tempo’s backing is staggering. $500 million at a $5 billion valuation before they’ve even really launched? That’s the kind of war chest that lets you make bold moves like this Commonware investment. And with design partners including OpenAI, Anthropic, and Shopify, they’ve got some of the biggest names in tech waiting to use whatever they build.
But here’s my question: can they actually deliver on all this hype? They’re hiring fast, making acquisitions like Ithaca, and now investing in other companies. That’s a lot of plates spinning simultaneously. The pressure must be immense with that kind of backing and valuation.
What’s next for crypto infrastructure
This move signals something important about where crypto is heading. We’re moving from the wild west phase to serious infrastructure building. Companies like Commonware that provide the underlying tools for others to launch blockchains are becoming increasingly valuable. It’s like selling picks during a gold rush – sometimes the infrastructure plays are smarter bets than the applications themselves.
The fact that Tempo snapped up Dankrad Feist, a key Ethereum researcher, shows they’re serious about technical credibility too. This isn’t just another crypto project chasing hype – they’re building something substantial, and they’re willing to pay for the best talent and partnerships to make it happen.
Looking ahead, I wouldn’t be surprised to see more of these strategic investments from well-funded crypto projects. Why build everything yourself when you can partner with or invest in companies that are already solving specific problems? It’s a smarter, faster way to scale – and when you’re competing in the fast-moving crypto space, speed matters more than almost anything else.
