The NFT Projects That Raised the Most Money in 2022
Written by Ditto PR’s Conna Chen, Associate Account Executive, and Elijah Pollack, Content & Strategy Associate
2022 was a wild ride for the NFT industry, with the technology featured on mainstream TV shows including The Ellen DeGeneres Show and The Tonight Show and receiving significant coverage from top tier outlets such as The New York Times and The Washington Post.
Fortunes were made and strong communities were formed. Could 2023 reach those highs? Signs point to yes, with a continuation of last year’s trends for the NFT industry.
The companies that received significant funding and attention didn’t do so by coincidence. Large NFT projects have put time and resources into developing a stronger integration between the average consumer and blockchain technology.
Here are some of the companies that raised the most money, and why:
- Genies, an avatar technology company, raised $150 million in Series C funding in April 2022, elevating the project to a $1 billion valuation. We already see companies such as Apple and Snapchat encouraging users to create avatars of their own (Memoji and Bitmoji). Genies will largely appeal to those who grew up playing virtual world games such as The Sims, Fantage and Poptropica. The opportunity to design an avatar allows users to express themselves in ways they aren’t able to in real life. If people can’t pay to change how they look in real life, investors are betting that people will pay for digital identities as the metaverse grows.
- Rario is an officially licensed NFT cricket platform that raised $120 million in Series A funding. The platform has already sold 50,000 NFTs since its founding in 2021 and this funding will expand its reach to Dream Sports’ (the world’s largest fantasy sports platform) 140 million-strong user base. Not too far off from the idea of collecting and trading physical baseball and Pokémon cards, there is an untapped market for collecting cricket cards as NFTs.
- Magic Eden, an NFT marketplace, raised $130 million in Series B funding to achieve unicorn status. The funds will be used to expand its primary and secondary marketplaces, look into multichain opportunities beyond the Solana blockchain and improve its products. Magic Eden believes NFTs have huge potential and are the first step to bridging the average consumer to the blockchain world.
- Animoca Brands raised $110 million in September shortly after a $75 million fundraise in July to promote digital property rights for online users. It aims to deliver true ownership of assets and data through blockchain and NFTs. It is laying down the groundwork for a possible IPO. The company develops original games and delivers decentralized rewards and monetization to players to help promote digital ownership.
- Doodles recently raised $54 million in its first funding round in September. The company’s product is cute, colorful and simple — it’s no secret why people love and want a Doodle profile-picture of their own. The Doodles team will use the funding to expand beyond profile-pictures and into a comprehensive Web3 entertainment company with ventures in music, events, gaming, consumer products and more.
What are investors looking for in this space?
Investors want to get into the game early by betting that NFTs are extremely profitable in the long term and will enter the mainstream. They are looking at industries that have a niche, loyal group of fans such as sports and music entertainment. Fans love having authentic ownership over items that relate to their favorite artist or teams, and NFTs make that reality easier to accomplish.
So looking at the big fundraising winners of 2022, here are some predictions for the NFT market in 2023:
- Big tech will embrace (or fight) Web3 as digital ownership is transferred from centralized entities and into the hands of users.
- More consumer brands will dive into NFTs and other Web3 applications to modernize marketing and offer new customer experiences.
- Fashion shows, concerts, award shows, and other live in-person events will continue to trickle into the metaverse.
- Companies that specialize in NFT authentication will become more popular.
2023 is poised to be a pivotal year for the development and adoption of blockchain technology. Projects will continue to raise funding and foster the growth of their communities, despite current market conditions. No matter what happens, NFT technology has already made an indelible impact.
