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.