Open Seas Raises $23 million led by Andreessen Horowitz
Opensea, the nonfungible (NFT) marketplace has announced a Series A funding of around $23 million. The funding is led by Andreessen Horowitz. Amongst the several investors are Mark Cuban, Tim Ferris, Naval Ravikant, and Alexis Ohanian. The owner of $69 million Beeple art, Metapurse is also an investor.
Previously, OpenSea’s funding was $2.1 million that was raised in November 2019 from Animoca Brands.
Now, the question is how is OpenSea different from other market players? Well, the answer is that they want to be the eBay of NFTs. Various other sites such as Mintable, Rarible, and MakersPlace all are a marketplace that enables you to create, buy, and sell NFTs.
OpenSea does the same and it also acts as an aggregator that pulls the data from other sites. This helps in creating more eyeballs. It is very different from the way that e-commerce sites usually have a presence on Amazon and eBay.
Other NFT marketplaces focus on a single type of NFT that is in the form of art. Whereas, OpenSea offers different types, such as art, trading cards, sports collectibles, in-game items such as Decentraland.
As of now, the site mainly supports Ethereum NFTs and has no other plan for Blockchain protocols.
The current business model is to take a small part from every sale. And as a matter of time, it will overweigh the latter. One obvious area is that NFTs are asserted and decentralized lending is there.
However, DeFi lending sites can do that themselves.
Although some may believe that OpenDea is an overnight success, they wanted a lot. It was set up in late 2017 and by late 2019 the sales reached $1 million. And it continued till September 2020.
In the last two months, there was crazy growth.