Bored Ape NFT Backer Could be Worth $5 Billion

3 February 2022

in NFT

Reading Time: 2 mins read

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Venture capital firm Andreessen Horowitz is reportedly in advanced talks to lead a funding round for Yuga Labs, the company behind the popular NFT project Bored Ape Yacht Club, in an investment that could value the company at $5 billion.

A valuation that high may seem outlandish at first glance, but the rising popularity of non-fungible tokens among the investors could justify such lofty valuations.

At least for now.

The funding round is expected to be for at least $200 million, Axios reported, and the company is seeking a valuation of $5 billion according to industry insider NFT Nick.

Neither Andreessen Horowitz nor Yuga Labs immediately returned a request for comment.

Yuga Labs is in talks about selling a multimillion-dollar stake to Andreessen , which has invested heavily in the crypto space and is reportedly looking to raise $3.5 billion for a crypto venture fund and another $1 billion for digital asset startups.

The firm raised $2.2 billion in June for its Crypto Fund III, which at the time was the industry’s largest.

The NFT marketplace exploded in 2021, generating over $23 billion in trading volume last year, according to blockchain analytics company DappRadar. That total was up from less than $100 million the year prior.

NFT Funding Is Exploding

The timing of Yuga’s funding round couldn’t be better.

Earlier this week, rival Pixel Vault raised $100 million in a funding round that was led by Adam Bain and Dick Costolo’s 01 Advisors and Velvet Sea Ventures just months after the company’s first launch in May.