NFT avatar startup Genies attains ‘unicorn’ status at a $1 billion valuation

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NFT avatar startup Genies has entered the ‘unicorn’ club at a $1 billion valuation following its $150 million Series C led by Silver Lake. The round witnessed participation from Bond, NEA and Tamarack Global. The startup has now raised approximately $260 million in venture funding, of which, $65 million was raised in its May 2021 Bond-led Series B funding round. Other noteworthy backers of the startup include Dapper Labs (the company behind NBA Top Shot and CryptoKitties) and Coinbase Ventures.

Co-founded in 2017 by Akash Nigam (CEO), Evan Rosenbaum and Jake Adams, the startup provides a platform for users to design personalized digital avatars which can then be used on social media and messaging applications. Additionally, its recent venture with Dapper Labs, called “The Warehouse”, capitalizes on the popularity of NFTs by giving users access to digital accessories minted on Dapper’s blockchain network ‘Flow’. Creators have full ownership and rights of these avatar creations and can then buy, sell, and generally trade them as NFTs on the platform, rendering it the first step in creating a digital identity across the metaverse for users.

“We believe avatar ecosystems are going to shape Web3 the same way that mobile apps defined Web2. With every advancement of the internet, an expansive new region of entrepreneurial skill sets is born. In Web3, Gen Z avatar ecosystem builders are going to be the leaders of innovation and, through our creator tools, we strive to empower their wildest imaginations, ideas, and experiences as avatar creations,” stated Nigam.

The Los Angeles-based platform gained substantial traction by virtue of its high-profile partnerships with celebrities including Shawn Mendes, Justin Bieber, Cardi B and Rihanna. These celebrities use the company’s avatars for social media posts and various other activations. Genies’ software development kit (SDK) enables brands to create a branded avatar experience and online marketplace directly in the apps. In 2020, the platform partnered with luxury brand Gucci which allowed users to purchase digital apparel and accessories for their avatars.

“Genies has established its leadership in Web3 with remarkable speed and focus, fueled by a long-term vision and clarity of purpose that we have been watching closely and greatly admire,” said Egon Durban, Co-CEO of Silver Lake. “We’re excited to partner with and support Akash, his co-founders Evan and Jake, and the entire Genies team as they make it possible for people to build the avatar ecosystems that we believe will drive the next evolution of human expression, communication and creativity.”