Crypto app store Magic Square is in constant fundraising mode, despite the bear market.
To date, the early-stage startup has raised $4 million at a $75 million valuation, all from token rounds, Andrey Nayman, co-founder and CEO of Magic Square, told The Block in an interview.
The startup first closed an oversubscribed $3 million seed round co-led by Binance and Republic Capital in July. Since then, Huobi Global, Gate.io and most recently Crypto.com have joined the cap table as strategic investors.
So, why does Nayman keep raising funds? “The answer is very simple: uncertainty,” Nayman said. “Because I don't know when the crypto winter is over, so it's very important for us to be sustainable.”
The fundraising isn’t stopping with Crypto.com's contribution. Magic Square plans to raise an additional $4.4 million at a $120 million valuation in another strategic token round, Nayman said.
“We're raising more from strategic partners that can assist us to grow, assist us to build the brand promise,” he added. “For us, the perfect timing to raise money is when you can, not when you need.”
What is Magic Square?
Magic Square is a one-year-old platform that wants to help the crypto industry garner one billion users with improved discovery tools.
Users can use Magic Square's Magic Store desktop application to easily find new crypto projects and applications.
“YouTube is a discovery channel, the app store is a discovery channel,” Nayman said. “In the crypto space, somehow people think that exchanges are discovery channels. They are not. They are good for tokens, liquidity but not for the discovery of the product.”
There are currently 40 people working to build what Magic Square hopes will be a decentralized community.
To get listed on the store, apps and projects must go through a community validation process, which includes a review of the project’s litepaper, audit reports and more. This process is managed by Magic Square validators.