Yuga Labs, the blockchain development company behind the Bored Ape Yacht Club NFT series, is in talks with A16z (Andreessen Horowitz), a Silicon Valley tech venture capital firm specializing in crypto businesses.
Initial reports on the topic were shared with insiders at the Financial Times, detailing how Yuga Labs is seeking funding from A16z, with a reported valuation of up to $5 billion. If the agreement goes through and the funding is obtained, this would be Yuga Labs’ first institutional investment.
The Bored Ape Yacht Club is one of the NFT scene’s greatest and most valuable collections to date, with over 383,000 ETH in volume transacted at a floor price of 100 ETH per, totaling over $1 billion in total traded volume.
Given that the negotiations are still ongoing, the contract terms have not been released, and neither A16z nor Yuga Labs have indicated that a deal is imminent.
Despite having only 11 full-time employees, Yuga Labs wants to become a “community-owned brand,” according to the firm. This will most likely expand once an agreement with A16z is finalized. A16z has invested in other NFT projects like OpenSea, Autograph, and Cryptokitties, as well as crypto projects like Solana Labs, Talos, Aleo, and Dfinity, at the same time.
A16z has announced that it wants to increase its crypto exposure by raising $3.5 billion for its venture capital fund, as well as $1 billion for seed investments in Web3 development. A16z raised a record $2.2 billion for a crypto startup fund in June of last year.