The NFT ecosystem is having an explosive moment and the startups that were ready to run with it are getting lots of cash to capture that momentum.
SuperRare, an NFT art platform that has garnered tens of millions in new sales in recent weeks, has just raised millions from investors. The $9 million Series A round was led by Velvet Sea Ventures and 1confirmation. Other investors participating in the round include Collaborative Fund, Shrug Capital, Third Kind, SamsungNext, Ashton Kutcher and Guy Oseary’s Sound Ventures, Mark Cuban, Marc Benioff, Naval Ravikant, and Chamath Palihapitiya, among others.
In an announcement of the raise, the team called the crypto art scene a “global phenomenon.”
SuperRare launched its art platform in 2018, since then it has differentiated by maintaining a closed early access platform that more closely curates the art they sell. Everything on the platform is a single-edition 1/1 sale. The team has said they plan to launch the site widely and open it up next year. The company earns a 3% transaction fee on art sales on the platform in addition to a 15% gallery fee for primary sales. One unique facet of the platform is that creators can continue to earn on a piece’s appreciating value following with 10% commissions on secondary sales.
While NFT art sales have taken off in recent weeks, there are still many structural issues facing their mainstream adoption largely due to scalability issues with Ethereum’s mainnet, which SuperRare operates on. Plenty of firms are building layer-two infrastructure that improves speed, and cuts down on energy usage and transaction fees. Today, ConsenSys launched a platform called Palm featuring artists Damien Hirst as the platform’s first artist drop.
After a lengthy crypto winter, blockchain startups are coming back with a vengeance amid a surge in startup investing, a surge in enthusiasm around NFTs and a surge in bitcoin prices. Today, NBA Top Shot maker Dapper Labs announced in had raised $305 million in venture funding.