Dapper Labs Raises $250M for NBA Top Shot

Dapper Labs Secures $250 Million Funding Round

Dapper Labs, the creator of the widely-recognized NBA Top Shot NFT game, has successfully obtained $250 million in a new funding round. Coatue is spearheading this latest investment.

Sources indicate that the company’s valuation now stands at $7.6 billion following this funding.

Continued Investor Confidence

Existing investors, including Andreessen Horowitz, GV, and Version One Ventures, are participating in this round once more. Additionally, new investors like BOND and GIC are joining the investment group.

NBA Top Shot and the Rise of NFTs

Dapper Labs is primarily known as the developer of NBA Top Shot. The platform allows users to acquire digital cards representing NBA players and iconic game moments.

These cards can be traded amongst players, with their digital collectible value fluctuating based on market dynamics.

The core technology underpinning NBA Top Shot is based on NFTs, or non-fungible tokens. Each digital card is uniquely identified and recorded on a blockchain.

Flow Blockchain: A Scalable Solution

Dapper Labs has engineered Flow, a novel blockchain specifically designed for scalability and practical applications, such as supporting the NBA Top Shot platform.

Industry Recognition and Leadership

Dan Rose, Chairman of Coatue Ventures, stated, “We think Dapper Labs is a leader in the space at the infrastructure level with the Flow blockchain and at the application layer with NBA Top Shot.”

He further added, “We continue to be impressed by Roham’s [Gharegozlou, CEO] strong leadership and vision and we could not be more proud to partner with him and the entire team at Dapper.”

Competition in the NFT Sports Space

This funding arrives shortly after Sorare, a competitor, raised $680 million at a $4.3 billion valuation. Sorare currently concentrates on fantasy football (soccer) and utilizes the Ethereum blockchain, employing ZK rollups to minimize transaction costs.

A competitive landscape is emerging as Dapper Labs and Sorare are poised to vie for the same user base.

Expanding into New Sports

Sorare is planning expansion into additional professional sports, while Dapper Labs has recently established a partnership with LaLiga, the Spanish football association.

Notably, LaLiga has also formed a partnership with Sorare.

Divergent Technological Approaches

These two companies are pursuing distinct strategies and utilizing different technological infrastructures. It remains to be seen if the market can accommodate both players effectively.

Dapper Labs anticipates launching its LaLiga experience in June 2022.

NBA Top Shot User Base and Future Potential

Currently, NBA Top Shot boasts 1.1 million registered users who have collectively traded over $780 million in digital assets.

Dapper Labs is also heavily invested in its infrastructure play with the Flow blockchain, which has the potential to power a wider range of experiences beyond fantasy sports.