General Catalyst Invests $7M in AR Startup for NFT Jetpacks

The Rising Hype Surrounding the Metaverse

Following extensive discussion regarding NFTs and Facebook’s rebranding to Meta, the term “metaverse” is now ubiquitous. Despite significant investment in avatars and virtual real estate by cryptocurrency enthusiasts, the long-term viability of these ventures remains uncertain.

Investment in the NFT Metaverse

Institutional investors are also participating in the NFT-driven metaverse landscape. Jadu, a crypto startup specializing in the sale of pixelated NFT items like jetpacks and hoverboards, has successfully secured $7 million in venture capital.

This funding round was led by General Catalyst, with further contributions from Coinbase Ventures, The VR Fund, Sound Ventures, and Guy Oseary.

Jadu’s Virtual Accessories and AR App

Jadu’s virtual accessories are designed for compatibility with various 3D avatars, including those from Larva Labs’ Meebits, as well as other high-value NFTs like CyberKongz and DeadFellaz.

These avatars can be showcased and utilized within the company’s augmented reality application, The Mirrorverse. Jadu envisions evolving this app into a comprehensive, Pokémon GO-style gaming experience.

Recent NFT Sales

Over a recent weekend, Jadu sold 6,666 NFT hoverboards, generating $4.4 million in Ethereum cryptocurrency.

The Debate Surrounding NFTs

The NFT space has faced considerable skepticism; however, advocates maintain that these digital assets offer substantial benefits to creators.

They believe NFTs provide avenues for gaining recognition and securing funding for projects that might otherwise struggle to obtain financial support.

Jadu’s Long-Term Strategy

According to Jadu CEO Asad J. Malik, demand for NFTs is exceptionally high. However, the company is prioritizing the development of its overarching platform.

“While we could capitalize on current interest by launching new avatar NFTs at a price of 1 ETH each, potentially generating $20-30 million, this approach isn’t sustainable or conducive to our long-term goals,” Malik explained to TechCrunch.

“We are adequately funded and focused on enhancing our AR capabilities, specifically creating compelling AR gameplay. NFTs are simply a means to facilitate this development.”