Paragraph has secured $1.7 million in its latest funding round.
The funding round was spearheaded byÂ Lemniscap while other participants include FTX Ventures andÂ BinanceÂ Labs.
Paragraph, the Web3 publishing platform has secured $1.7 million in its latest pre-seed funding round spearheaded by Lemniscap. The other participants in the funding round include FTX Ventures, Binance Labs, Seed Club Ventures, and GCR.
Colin ArmstrongÂ founded Paragraph in 2021 as a publishing platform to support web3 writers, DAOs and NFT communities to monetize their content through an all encompassing newsletter service.
The main of Paragraph is to shake up the conforming status quo of publishing through challenging the legacy publishing companies dominating the space. The startup plans to achieve this by providing Web3 tools that ease content creation. The process involves substituting the conventional paid subscription Web2 newsletter system such as what Substack offers with a refreshing system that allows content creators and community administrators to manage their audience via a membership system that works with NFTs or ERC-20 tokens.
Asides from the traditional benefits of membership, it creates an opportunity for productive engagements between content creators and their audience. According to the company, this may come in the form of locking content with NFTs or having a reward system for token holders to encourage growth. The platform allows creators to use their pre-existing NFTs or ERC20 tokens or mint some directly on Paragraph which costs a 3% fee.
Shaishav Todi, a partner at Lemniscap was of the opinion that Substack had dominated for too long and it was time for the system to be disrupted. In the words of Todi: “We think a more equitable monetization, ownership and distribution is required.”
Todi went further by claiming that all the introduction made by Lemniscap created the urge to invest. The company purportedly made introductions to five or six funds within the first three days. He summarized this: “by the fourth day, everyone was wanting to invest, and he was oversubscribed.”
According to Paragraph, the company has secured major strategic partnerships with big companies such as Coinvise, Clubs.link, Farcaster, and Unstoppable Domains.
From all indication the top rated crypto firms are starting to notice and get actively involved with media and publication tools.
Alameda Ventures recently supported Web3 media firmÂ Trustless Media which has been harnessing NFTs for the growth of community owned contents. On the same vein, crypto giant Binance of which Binance Lab is a subsidiary recently reached an agreement with Forbes in a deal that will have it invest $200 million into the news publication company.
Research conducted by The Block reveals that during this past quarter, the bulk of seed and pre-seed blockchain venture deals to the tune of 14% originated from Web3.
As originally published in (https://www.theblock.co/post/179174/web3-publishing-platform-paragraph-raises)