Andreessen Horowitz (A16z), a Silicon Valley tech VC, is apparently eyeing a USD 5 billion investment in Yuga Labs, the founder of the Bored Ape Yacht Club. According to the Financial Times, Yuga Labs is looking for a multi-million dollar investment. If a transaction is reached, it will be Yuga Labs’ first institutional investment, as its predominant non fungible token (NFT) collection has grown to be one of the industry’s largest.
With 380,821 ETH (USD 1 billion) in total traded volume on the largest NFT marketplace OpenSea, Bored Ape Yacht Club (BAYC) is presently the second-most traded collection. The collection had a floor price of 99 ETH (USD 263,839). Justin Bieber and Paris Hilton, for example, have openly said that they possess Apes.
On Jan. 4, the firm declared that it has always aspired to be a “community-owned brand.” The crypto portfolio of the investment business contains 41 firms, including the NFT-based initiatives OpenSea, Autograph, and Cryptokitties.
A16z intends to increase its crypto exposure by looking for USD4.5 billion in funds, cementing its position as a prominent crypto investment business. Trading volume on NFTs has increased from USD 20,000 per day on January 26, 2021 to more than USD 5 billion on OpenSea in just a year.