A startup using a .Finance domain name has raised an $8.2 million round of funding from some of the leading venture capital firms, according to TechCrunch. Compound Labs, which can be found by visiting Compound.Finance, was founded in 2017. The VC firms that reportedly invested in Compound include Coinbase’s venture fund, Andreessen Horowitz, Polychain Capital, and Bain Capital Ventures. .Finance is a new gTLD domain name extension operated by Donuts.
I think this news is notable for two reasons.
The lack of a .com domain name did not stop the company from getting this large funding round. It would seem that owning the matching Compound.com domain name was not deemed critical to its launch. Assuming a deal to acquire the domain name has not been reached, it would seem that the startup is cool with proceeding sans the matching .com domain name. Having a major funding round publicly announced can make the matching .com domain name more expensive. For what its worth, DomainIQ values it at $156,000.
The company is branded as Compound, and its corporate name is Compound Labs. The startup is not using its .Finance domain name in its branding. This is an interesting decision and could potentially pose a search engine challenge for people looking to find it via Google or even Twitter. A Google search of “Compound” yields many results, with Compound Labs’ website far down the list. Ironically, the TechCrunch article ranks much higher.
It looks like the Compound.com domain name is owned by a domain investment company. The parked landing page has a “for sale” link at the top, so Compound Labs could try to buy the domain name if it wants to own it. With an $8.2 million round of funding, it seems like Compound Labs can afford to acquire Compound.com.
I’ll monitor Compound.com to see if the domain name changes hands any time soon.