Kickstarter Raises $100M Funding from a16z, Will Transition into a Web3 Company
In Brief
Kickstarter raised $100M funding from a16z and Yes VC to shift towards blockchain technology with the new financial support.
Crowdfunding platform Kickstarter concluded a $100 million fundraising round led by a16z, the cryptocurrency-focused division of the venture capital firm Andreessen Horowitz, and Yes VC. The recent influx of funds has attributed a valuation of approximately $400 million to the startup.
The recent investment is accompanied by the condition by Andreessen Horowitz that Kickstarter will explore a shift towards blockchain technology under its new financial support. The ambitious yet challenging proposal involves transitioning its entire platform to the Celo blockchain, an additional portfolio company of a16z, where it would function as an open-source protocol, marking a departure from the proprietary code model commonly employed by most technology firms.
Celo streamlines payments for mobile users by linking phone numbers to cryptocurrency wallet addresses. Initially established as an EVM-compatible Layer 1 with an emphasis on scalability, the blockchain has plans to evolve the network into an Ethereum Layer 2.
Meanwhile, users would have the capability to establish miniature platforms centered around specific interests, attracting a broader audience and sharing any generated profits with Kickstarter. This setup, reminiscent of other projects such as the decentralized social network Farcaster, doesn’t mandate donors to use cryptocurrencies. However, it involves Kickstarter creating an entirely new, open-source iteration of its current software, constructed atop a blockchain that has yet not undergone testing with a large-scale consumer application.
“Since our launch in 2009, $8 billion has been pledged to creative projects on Kickstarter. As we look to the future, we’ll continue to center our community in everything we do,” said the Kickstarter spokesperson in a written statement.
Kickstarter Eyes Blockchain Future
Founded in 2009, Kickstarter operates as a platform where artists and creators can seek crowdfunding for projects such as albums, board games, or comic books from the public. Over its existence, 23 million individuals have supported a project, contributing a total of $7,870,107,881, resulting in the successful funding of 254,993 projects.
Chris Dixon, a general partner at venture capital firm Andreessen Horowitz, consistently emphasized the importance of returning to the “more egalitarian era of the internet” in his widely read blog. As an advocate for Kickstarter investment, he urged the company to align its new development strategy with this vision. In the pursuit of realizing a cryptocurrency-powered web, Chris Dixon previously invested in other ventures, co-leading two deals in 2018 that totalled over $160 million for a startup named Dfinity. The startup aimed to construct a blockchain-based version of the internet.
The recent funding round and exploration of blockchain technology signal Kickstarter’s ambitious shift, contributing to onboarding more users and creatives to the Web3 space.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
