A $20 million Series A investment has been obtained for a firm that uses non-fungible coins to represent digital racing horses.
Andreessen Horowitz and TCG Capital Management, both of whom have made major moves in the NFT market, participated in Virtually Human Studio’s funding round.
VHS has created a so-called metaverse based around digital horse training, breeding, and racing through its game platform, entitled ZEN RUN. Digital horses are made and then sold for real money on platforms like OpenSea, with some fetching considerable sums. Horse owners pay an admission fee to participate in ZED RUN and can earn prize pools if their horses win on the digital track.
The startup, which was launched in 2018, said it will use the capital to expand its engineering and product teams in a blog post. VHS further stated that more than $30 million in digital racehorse-NFTs had been sold to date.
“Unlike their real-life counterparts, ZED RUN’s racehorses aren’t constrained by physical constraints. “This means horse racing is now a 24-hour sport,” VHS CEO Chris Laurent stated in a statement.
Venture capitalists are still interested in the NFT space. OpenSea is the most recent example, having raised a $100 million fundraising round headed by a16z this week. OpenSea was valued at $1.5 billion after the Series B financing. Earlier this year, a16z led OpenSea’s $23 million Series A round.
TCG was a part of Dapper Labs’ $305 million fundraising round, which was reported in late March. Dapper Labs is the firm behind NBA Top Shot and CryptoKitties.