Kickstarter's transformation: A covert $100 million investment for web3 pivot
What's the story
In a surprising turn of events, crowdfunding platform Kickstarter received a $100 million investment offer in December 2021, to transition into a web3 company. Web3 companies refer to firms that involve decentralized internet. The proposal came from venture capitalist Chris Dixon after board members of Kickstarter approached him with the idea of blockchain integration. As per Fortune, the funding round was led by Andreessen Horowitz (a16z), to shift Kickstarter's operations onto Celo, a blockchain platform also part of a16z's portfolio.
Steps
Kickstarter's blockchain pivot
Despite the significant investment, Kickstarter's transition to a web3 company did not materialize. The plan was to move the entire platform onto Celo, and operate as an open-source protocol. However, no segment of this platform was converted to run on this blockchain. Following public backlash, Kickstarter established a community advisory board and decided to shift the focus away from blockchain technology.
Upcoming
Andreessen Horowitz's future plans
Andreessen Horowitz, the venture firm that led Kickstarter's $100 million funding round, is reportedly in the concluding stages of raising a massive $6.9 billion fund to enter the AI space. The firm plans to complete this fundraising effort by April 2024, with half of the funds allocated to their central fund. However, a16z has not disclosed any specific details regarding this portion of their assets.