Creator of hit NFT project NBA Top Shot poised to net $250 million in round led by $25 billion firm

Dapper Labs — the firm behind popular blockchain-based collectible projects like NBA Top Shot and Crypto Kitties — is in the process of wrapping up a fundraising round that would net the firm more than $250 million at a valuation of approximately $2 billion, according to sources familiar with the deal. 

Known for developing digital collectibles based on non-fungible tokens (NFTs), Dapper Labs previously raised $12 million in an August funding round which included investments from several NBA players including Spencer Dinwiddie of the Brooklyn Nets and Andre Iguodala of the Miami Heat. At the time, the firm was beta-testing its NBA Top Shot blockchain-based basketball card trading platform, which had generated more than $1 million in revenues at the time, according to VentureBeat. 

The company has also developed its own blockchain system to support its NFTs, called Flow.

The new funding round is being led by Coatue Management, according to sources. Led by Philippe Laffont, the $25 billion investor is known for backing firms like Airtable, Instacart, Spotify, and Chime. 

The raise comes after a period of fast growth for Dapper Labs. The firm's NBA Top Shop project — launched in October 2020 — surpassed CryptoPunks to become the most popular NFT series by volume in January 2021. The highest recorded daily volume was $6.1 million on January 24.

Dapper Labs has generated nearly $100 million in total NFT sales through Crypto Kitties, which is best-known for clogging the Ethereum network in 2017, and NBA Top Shop.

Source: Cryptoslam.io, Dapp Radar, The Block Research

Indeed, NBA Top Shop has witnessed a flurry of demand, which has led to a spike in the prices of its collectible cards. The platform increased the price of its Legendary packs by 350% during a sale on February 6, from $230 to $999. Following the sale, Dapper Labs CEO Roham Gharegozlou tweeted that 25,000 individuals had been in line to buy the Legendary packs.

Dapper Labs' interest in pro sports extends beyond the NBA. In February, the startup signed a licensing deal with the Ultimate Fighting Championship (UFC), the popular mixed martial arts league.

A representative for the firm did respond to a request for comment before publication.