Snackclub, a decentralized autonomous organization (DAO) focused on building out a blockchain gaming community, is set to close a Series A round at a $100 million fully diluted valuation, according to three sources with direct knowledge of the matter.
The DAO is seeking to raise $7 million through a private token sale, per the same sources. The fully diluted valuation figure is calculated by multiplying the number of tokens in circulation by price. It’s unclear how many tokens are available in this sale.
Snackclub’s co-founder Angelo Cazzola confirmed the ongoing $7 million fundraising round in writing, responding to questions from The Block.
Cazzola did not comment on the valuation. After publishing, a Snackclub representative reached out to The Block to dispute the valuation amount.
Snackclub is the sister company of Loud, a fast-growing esports and lifestyle brand based in Brazil.
Founded in 2019 by Bruno Bittencourt, Jean Ortega and Matthew Ho, Loud bills itself as one of the biggest esports companies you’ve never heard of. It was the first esports company to hit 1 billion views on YouTube and currently has 12 million subscribers.
Loud’s founders, alongside Cazzola and Michael Valore, raised $9 million in a seed round in April to setup Snackclub, a DAO that aims to reimagine blockchain gaming through community leadership.
Anyone over 18 can join Snackclub’s DAO and there is no fee to participate, per the seed round press release.
The majority of Snackclub’s tokens — which confer governance rights to holders — will be reserved for the community, according to the release. This will come after the founders and investors have finalized a strategic vision later this year.
The DAO plans to mobilize Loud’s fanbase across its social media platforms and focus on content and media that reflects Loud’s brand, according to the release. Snackclub’s website states the DAO already has over 37,000 active members.
The $9 million seed round gave investors a Simple Agreement For Future Equity (SAFE) and token warrants. Investors like Mechanism Capital, Ascensive Assets, Animoca Brands, Jump Crypto and OP Crypto participated in the seed round.
The proceeds of the Series A round will go towards research and development as well as the DAO’s investment arm, Cazzola said.
The Block Research's July funding recap shows that NFT and gaming startups have been particularly popular among investors in the wider blockchain sector over the past 12 months.
This article has been updated to reflect that Matthew Ho is also a co-founder of Loud and to provide additional clarity on the DAO's governance rights and the startup's valuation.
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