Hang, a non-fungible token (NFT)-powered membership and loyalty rewards platform, has raised $16 million in a Series A round led by Paradigm.
Additional investors included Tiger Global and founders of Allbirds, Warby Parker, Harry's, Tiffany's executive Alexandre Arnault, Kevin Durant's Thirty Five Ventures, and Mr. Beast's Night Ventures.
The platform can be used by brands to launch NFT memberships for loyal customers. They can use these to unlock perks and benefits, and be part of a brand's community long-term.
Hang co-founder and CEO Matt Smolin told The Block that the company will use the fresh funds to expand product and engineering teams and build out its go-to-market team.
“It is easier than ever to create a brand today, which has led to so much competition in the fashion and greater apparel world, with acquisition costs skyrocketing. As such, it is more important than ever for these brands to offset the increased acquisition costs by increasing the lifetime value of their users," said Smolin.
"The best way to do this is to build more loyalty into their businesses. Those brand executives see Hang as a radically differentiated solution from what is in the market and one that can finally align incentives between both brands and consumers."
Smolin said he doesn't foresee many challenges with onboarding customers onto an NFT-powered membership program, even if they're not "crypto natives" or enthusiasts.
Currently, Hang works with Pinkberry, Budweiser, Bleacher Reporter and Superfly.
“The companies we’re working with are globally recognized brands that have millions of customers," he said. "I tell brands and CMOs all the time that the term 'NFT' may turn out to be superfluous in the future – we never say https anymore, this would be the same idea.”
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