OpenSea raises $300 million, valuing the company at $13.3 billion

The start-up has been valued at a staggering amount just four years after its founding.

OpenSea raises $300 million, valuing the company at $13.3 billion

New venture capital has been raised by the Silicon Valley blockchain start-up OpenSea, which raised $300 million Series C round making it the latest company to profit from the rush to invest in crypto assets.

In just four years after its founding, a start-up has been valued at a staggering $13.3 billion thanks to the new round of funding led by Paradigm and Coatue Management.

Based on data provided by OpenSea, the company had previously secured over $100 million from a variety of investors, including Andreessen Horowitz and Ashton Kutcher.

The OpenSea market was launched in 2017 to allow people to buy and sell NFTs, or non-fungible tokens, which are unique digital codes backed by blockchain technology.

Tokens from the NFT can vary, although the most popular ones come from artists who list their pieces on the OpenSea website for auction, similar to eBay.

Most forms of NFT tend to be connected to Ether, a popular cryptocurrency and blockchain technology. Winning bids can sometimes reach hundreds of thousands of dollars.

OpenSea has become the place where crypto enthusiasts trade NFTs as crypto start-ups have become more popular in recent months. Increasingly large bets are being placed on the crypto market as a result.

In 2021, PitchBook, a company that tracks private investments, found more than $3 billion in private investment in NFT companies.

According to PitchBook, over $28 billion was invested in cryptocurrency and Non-Fiber Technology start-ups worldwide last year.

OpenSea's founder and CEO Devin Finzer said the world began to realize the potential of NFTs in 2021. "This type of digital assets has the potential to be used in a variety of industries, communities, and creative categories. The vision of our company is to be the digital economy's destination of choice."

Despite the frenzy around NFTs and blockchain technology, many crypto critics are unconvinced that it is anything more than a fad.

In the past few days, OpenSea was briefly in the news after a patron claimed that NFTs worth $2.2 million had been stolen from him. The stolen assets were later frozen by OpenSea, which prohibited the items from being sold on the site.)

Despite those worries, technologists continue to advance. Thousands of employees from big tech companies like Meta, Google, and Amazon are being recruited by companies working on cryptocurrencies and NFTs, allured by the promise of a lucrative new career.

Brian Roberts, a former Lyft CFO, joined OpenSea as the company's first CFO last year. Shiva Rajaraman is also the company's new vice president of product, former vice president of commerce for Meta.