In a pre-seed funding round that was headed by Lemniscap, the Web3 publishing platform known as Paragraph raised a total of $1.7 million. According to a press statement issued by the company, other participants in the funding round include FTX Ventures, Binance Labs, GCR, and Seed Club Ventures.
Paragraph is a publishing platform that was established in 2021 by Colin Armstrong. Its primary function is to assist web3 writers, DAOs, and NFT communities in monetizing their content by providing an all-in-one newsletter service.
By providing web3 tools for the development of content, Paragraph intends to compete with the heavyweights of traditional publishing. Paragraph enables content providers and community builders to manage their audience through memberships using either NFTs or ERC-20 tokens, as opposed to paid subscriptions on a web2 newsletter platform such as Substack. According to the company, these memberships open up new opportunities for engagement. This could mean gating content using NFTs or rewarding token holders in order to encourage growth. Creators have the option of minting their own NFTs or ERC20 tokens directly on Paragraph for a 3% charge, or they can choose to leverage their own NFTs or ERC20 tokens.
“We actually feel that Substack is ripe for disruption,” said Shaishav Todi, a partner at Lemniscap, in an interview with The Block. “We think a more equitable monetization, ownership and distribution is required.” We actually made introductions to five or six funds on the first three days,” they said. “By the fourth day, everyone was wanting to invest, and he was oversubscribed.”
According to the statement made by the company in the announcement, Paragraph has already established multiple strategic collaborations with companies like as Coinvise, Clubs.link, Unstoppable Domains, and Farcaster.
The most prominent cryptocurrency companies are showing a growing interest in various forms of media and publication tools.
Alameda Ventures has just invested in Trustless Media, a web3 media startup whose mission is to generate community-owned content by leveraging NFTs. In the meantime, the parent company of Binance Labs, Binance, has reached an agreement to invest two hundred million dollars in the news magazine Forbes.
According to The Block Research, Web3 deals accounted for 14% of the seed and pre-seed blockchain venture deals completed during the previous quarter.
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