Dapper Labs, the blockchain startup behind CryptoKitties, has closed a financing round after raising $11.2 million to develop a new blockchain called Flow, Forbes reported on Thursday.
The round was led by Andreessen Horowitz and saw the participation of major venture capitals including Union Square Ventures, Digital Currency Group, Venrock, and Accomplice. In addition, the company also received funds from popular music label Warner Music, and game development company Ubisoft.
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Like any other startup, investors will receive the equity stakes against their investments. However, they will have the option to convert them into the native tokens of Flow when it launches. The company will also need approval from the Securities and Exchange Commission (SEC) to distribute tokens as securities.
The blockchain company will also collaborate with entertainment industry giants Warner Music and Ubisoft and is exploring use cases for flow in the music and gaming industry.
“Imagine on flow, the possibility of a platform for billions of sports fans to trade verified, authentic and limited edition digital memorabilia in real time around the world,” Roham Gharegozlou, chief executive of Dapper Labs, said.
Making tradable goods a norm on blockchain
Warner Music is also considering to create unique tradeable merchandise featuring its talent roster including Cardi B, Ed Sheeran, and Bruno Mars. Dapper Labs is also in talks with Ubisoft regarding a game in which players can trade unique cars with each other.
“We think that as people spend more time crafting their persona in the digital realm, digital goods and collectibles is a great way to express that fandom,” said Jeff Bronikowski, senior vice president of business development at Warner Music.
In late 2017, Dapper Labs released Cryptokitties on Ethereum blockchain. The game became so popular that it clogged Ethereum’s network multiple times and some of the kitties were traded for millions.