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Web3 startup Tweed exits stealth with $4m raise

The startup is bringing the familiarity and confidence of web2 onboarding to web3.

a group of people posing for a photo

Julie Tauber, Michelle Latzer & Udi Hakim/Tweed.

Tweed, a startup that has just exited stealth mode, has raised a $4m seed round led by Accel.

Communitas Capital Partners, Zero Knowledge Ventures and angel investors including Sorare CEO Nicolas Julia, ex-Venmo COO Mike Vaughan and ex-JP Morgan executive Ameet Patel also took part in the round.

The white-label wallet and payment solution supports web2 platforms hoping to break into the web3 space.

Supporting NFTs and cryptocurrencies, the plug and play solution enables companies to generate wallets for their users and can be integrated into existing products.

Tweed was founded last year by CEO Michelle Latzer, previously Google tech infrastructure, CPO Julie Tauber, ex-Mastercard and CTO Udi Hakim, formerly head of innovation at CYMOTIVE Technologies.

“More businesses are accepting crypto payments and incorporating web3 experiences than ever before,” Latzer said.

“However, this new era of web3 payment infrastructure is still in its infancy. It remains difficult to scale transactions without experiencing massive regulatory, technical and onboarding friction.” 

Latzer added that “every sector” will be able to bring the familiarity and convenience of web2 onboarding into web3, whether that’s gaming — maybe you want to introduce an NFT aspect — or retail — so customers can spend crypto.

“Starting with a developer-friendly, white-label, true self-custodial wallet, Tweed helps brands scale their web3 offering so that they don’t have to choose between user experience or user ownership, all without added regulatory overhead,” she said.

Tweed’s embedded web3 infrastructure product and self-custodial wallets remove some of the regulatory concerns facing companies, such as obtaining a licence or KYC checks.

“While native web3 experiences are a worthy end-goal, there’s a huge opportunity right now in enabling web2 platforms to embrace crypto,” Accel partner Andrei Brasoveanu said.

“With a long-term vision to build full web3 payment rails for all web2 brands and platforms, Tweed is wholeheartedly embracing this by putting native integrations, security, compliance and convenience at the heart of their self-custodial wallet.”

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