Feb 3, 2022 - Economy

Andreessen Horowitz in talks to invest in Bored Ape Yacht Club

Illustration of a peeled banana made of money.

Illustration: Shoshana Gordon/Axios

Andreessen Horowitz is in advanced talks to lead a large funding round for Yuga Labs, the company behind the NFT project Bored Ape Yacht Club, Axios has learned from multiple sources.

Why it matters: Bored Apes is among the most popular community-based NFTs, below CryptoPunks and above Pixel Vault (which just raised $100 million of its own). Last week, Justin Bieber paid $1.29 million for a Bored Ape, while another last year sold for $3.4 million at Sotheby's.

  • The round is expected to be for at least $200 million, with industry insiders NFT Nick recently tweeting that the company was seeking a $5 billion valuation.
  • Andreessen Horowitz declined to comment, while Yuga Labs didn't respond to Axios' inquiries.
  • The deal is not yet closed, which means it still could fall through.

Business model: Yuga generates revenue via primary sales of its Apes or other NFTs, including recent Mutants and Kennel drops, plus residual revenue when those NFTs are resold on the blockchain.

  • Buyers retain IP rights to their Apes, which means they could use the image to sell or market other products.

Go deeper: Bored Ape Yacht Club's misadventures with NFTs

Go deeper