SAN JOSE (CBS News) — As a technology, non-fungible tokens are barely 10 years old. Yet venture capital firms are pouring money into NFT startups, turning startups into billion-dollar companies — known in Silicon Valley as “unicorns” — virtually overnight in an investment frenzy that recalls the 1990s dot-com boom.
Yuga Labs, the parent company of Bored Ape Yacht Club — a collection of NFTs featuring profiles of cartoon apes — this week announced a $450 million funding round. That values the company at a staggering $4 billion. In January, NFT platform OpenSea said it raised $300 million, valuing the company at an even more eye-popping $13 billion.
Venture capitalists invested $4.6 billion dollars in NFT companies last year, up from only $145 million in 2020, according to the Venture Capital Journal, citing PitchBook data.