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NFT marketplace Rarible raises $14.2m in funding

24 Jun 2021 : 12:54
3 min read
  • NFT marketplace Rarible raised $14.2 million in funding,
  • It announced it is planning to move to the new blockchain Flow
  • NFT startups have been able to raise large sums of money this year

Non-fungible token (NFT) marketplace Rarible raised $14.2 million in funding from Venrock Capital, CoinFund and 01 Advisors and announced it is planning to move to the new blockchain Flow.

The increasing popularity in NFTs resulted in a positive start of the year for Rarible

The startup, allows users to buy and auction digital art. The company also has its own Rarible governance token, which allows users to make and vote on proposals around the platform’s features and fees. It is one of the most used marketplaces by NFT collectors and artists, along with Opensea and SuperRare. The platform, which launched in early 2020, says it has processed more than $150 million in transactions in the last 12 months.

The NFT market gained a lot of attention in the first quarter of this year as interest in cryptocurrencies grew, and the media also wrote about NFTs. The growing popularity was very positive for NFT marketplaces such as Rarible and led to more sales.

Rarible is partnering with Flow to lower the barrier to entry

Despite that the increasing popularity was a good thing for the marketplace, there were also problems. Because of Ethereum’s popularity, the resultant high transaction costs (gas) meant that the minimum cost to mint an NFT was around $70. For many middle- and low-income individuals, the break-even price alone is simply not affordable. Moreover, complex crypto wallets, unsustainable practices, and upfront fees discourage more people from participating in the industry and inhibit its expansion.

To make entering the NFT space less costly and easier, Rarible has partnered with Flow to support its primary and secondary markets. Flow is the blockchain developed by Dapper Labs and used in its NBA Top Shot offering. It has fewer barriers to entry for consumers and brands than Ethereum, on which most NFT marketplaces operate.’

NFT startups have been able to raise large sums of money as investors recognize the importance of backing early players in the digital collectibles space. OpenSea, one of the most popular NFT hubs, received a $23 million funding round from Andreessen Horowitz and Naval Ravikant in the spring. In March, SuperRare, an invite-only NFT marketplace, received $9 million in Series A funding.

About Author

Stan Colenbrander

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Stan is the head of news and podcast host at Cryptonary. He was formerly a member of the Cryptonary Pro community. In early 2021, he decided to drop out of journalism school at university to pursue journalism in real life and make an impact in the crypto space. . His areas of interest include the NFT industry, decentralised finance, and crypto start-ups.

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