Dapper Labs is the company behind NBA Top Shot and is not new to the NFT space. Remember CryptoKitties? They created them back in 2017 and are the ‘originator’ of NFTs – they created the NFT token standard underlying the technology.
Dapper has been busy raising money lately:
- $2.6B valuation based on $305 million capital raise announced on March 31.
- Now the company is raising more money at a $7.5B valuation, according to reporting by The Information. The amount of money raised has not been disclosed.
What are they going to do with all that cash?
Most likely, buy up rights to create more NFTs like the ones they created for the NBA with Top Shot. Total gross sales of NBA Top Shot are around $527 million in initial and secondary market sales. Dapper gets a 5% cut on the resales of Top Shots.
The big sports franchises know they’re sitting on the equivalent of a sea of oil with their NFT rights, so they want big bucks for them. And after whatever deal Dapper Labs struck with the NBA, the next sports franchise is probably going to ask for more.
Dapper is looking good
Dapper has set up a good situation for itself – they have developed the Flow blockchain specifically for games and entertainment applications. They earn transaction fees and benefit from any increases in the value of the Flow token.
Potential customers
The MLB is working with Topps so they’re gone. But there are many other major franchises such as the NFL, NASCAR and non-U.S. ones that are still be up for grabs. And sports is not the only game in town – NFTs are a hot commodity for comics and video games. Word is DC Comics, which owns Batman, Superman and Wonder Woman, is planning NFTs. So, Deep pockets could help Dapper nab some super deals.
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