Less than three weeks ago, NBA TopShot creator Dapper Labs announced it raised $305 million in funding at a $2.6 billion valuation. Now tech publication The Information reports that further funding is being discussed at a valuation above $7.5 billion. Coatue, which led the March round, is thought to be the leader here.
While much of the attention might be on the eye-popping valuation, the more interesting question is, why does the startup need so much money? And why does it need more now compared to last month? Our guess is to do more nonfungible token (NFT) deals with big sports franchises. And to get the money in the bank while the hype is still significant.
NBA Top Shot has grossed $527 million in initial and secondary market sales, with most in the latter category. The game still gets a 5% cut of those re-sales. That said, the activity has dropped off from its peak. According to CryptoSlam, NBA Top Shot did almost $136 million in sales during the last 30 days, but that’s less than half of the previous month.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
