OpenSea has disclosed that it has closed a $300 million Series C funding round that valued the company at $13 billion. The funding round was led by hedge fund Coatue Management and Paradigm.
Details Of The Funding Round
After reports began emerging about its funding effort, OpenSea announced that it had successfully closed a $300 million funding round. OpenSea’s valuation showed the unparalleled growth experienced by the platform in recent months.
Sources stated that OpenSea, which had raised at a valuation of $1.5 billion last year, was planning a raise at a valuation of almost $15 billion before investors settled at a lower figure. The figure of $13 billion was first reported by Eric Newcomer while also revealing that Coatue Management and Paradigm were leading the round. Other significant participants in the round include Kathryn Haun’s new Web3 and crypto-focused investment fund. Haun was previously a partner at a16z.
An Unprecedented Growth Story
OpenSea has seen its transaction volumes touch $2.4 billion in just the past 30 days and brought in millions of dollars in transaction fees. OpenSea’s valuation has seen unprecedented growth, given that just last year, it had been valued at $1.5 billion by Andreessen Horowitz’s crypto arm. The growth, while reflecting OpenSea’s own growth, also reflects the overall growth in the space and that of other NFT firms such as Dapper Labs, which raised $7.6 billion last year.
A Tweet by Joe Pompliano highlighted the scale of OpenSea’s growth. Pompliano highlighted the growth in the platform’s transaction volumes, which went from $474k in 2018 to $8 million in 2019. Transaction volumes reached $24 million in 2020 and then to a jaw-dropping $15 billion in 2021.
OpenSea currently has very few competitors in the market, although that landscape could change, with Coinbase eying the market and several other NFT marketplaces set to launch, with the NFT marketplace only set to grow further in 2022.
OpenSea Looking Ahead
While confirming the funding, Devin Finzer, Co-founder and CEO of OpenSea, stated in a blog post how the funding would be utilized. He stated that the funding would be used towards customer support and safety and hiring, and product development. He also stated that OpenSea would be investing in the NFT and Web3 community.
“We are committed to expanding the entire NFT ecosystem. This quarter, we are launching a grant program to give us the opportunity to directly support the developers, builders, and creators shaping the future of the NFT space. Our ambition is to foster the scale and growth of the broader NFT ecosystem, including raising the profile of emerging creators and investing in the people who shape the NFT space for the better today.”
The new capital will enable OpenSea to consolidate its position in the NFT market while also staying ahead of new players emerging in the market.
OpenSea’s Brush With Controversy
OpenSea had gone through a bit of controversy back in September when one of their executives profited from insider trading. However, OpenSea was quick to address the issue and swiftly implemented new policies to avoid a repeat of the same.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.