NFT Startup Genies Valued at $1 Billion After Series C Funding

NFT startup Genies has raised $150 million in Series C funding at a $1 billion valuation, making it the latest cryptocurrency-focused platform to achieve "unicorn" status.

The round was led by California-based private equity firm Silver Lake, which manages $88 billion in assets through 2021, with participation from existing investors Tamarack Global, BOND and NEA. Genies said the funding will be used to increase the internal capabilities of its engineering department and invest in new technologies.

Founded in 2017, Genies is an avatar technology company initially targeting social media and messaging platforms. Now, it's trying to capitalize on the metaverse, the catch-all phrase for companies looking to bridge the physical and virtual worlds. The platform enables users to create avatars that can be deployed in virtual worlds. Its NFT marketplace is called "The Warehouse" and is being built by Dapper Labs.

Genies claims to have captured 99 percent of the celebrity avatar market through formal partnerships with Universal Music Group and Warner Music Group.

While NFT sales have slowed considerably from their peak last September, the Metaverse project appears to be breathing new life into the industry. Data from analytics firm Nansen recently showed that despite excessive speculation, the Metaverse segment of the NFT market is growing rapidly. Nansen categorizes land, real estate NFTs, avatars, and utility NFTs as metaverse games.

Despite the volatility, the NFT market is growing faster than the broader cryptocurrency market, Nansen said.