Venture Capital firm Andreessen Horowitz (A16z), founded by Marc Andreessen, is reportedly in talks with Yuga Labs for an investment that would value the company at $5 billion.
Yuga Labs is the creator of Bored Ape Yacht Club, the second most popular and second most valuable NFT collection ever.
According to the Financial Times, Yuga Labs is seeking a multi-million dollar funding, and the VC has stepped up with an offer. Should the deal go through, it will be Yuga Lab’s first investment from an institutional investor.
BAYC is one of the most traded NFT collection by volume on OpenSea, second only to CryptoPunks. Its trading volume currently stands at 382,000 ETH, which amounts to more than $1 billion. The collection’s floor price is currently 100.5 ETH.
The collection also finds itself in an enviable position where celebrities love it, and are proud to share their Bored Apes to their millions of social media followers.
Among the famous people who publicly own Apes are Justin Bieber, Eminem, Paris Hilton and Steph Curry. Actress Gwyneth Paltrow also owns one, and even changed her Twitter profile picture to an Ape NFT.
It is an incredible fete for Yuga Labs, which started the year with only 11 full-time employees. It is even more astounding when you consider that the people who run company are publicly unknown, choosing to use pseudonyms.
By investing in Yuga Labs, A16z will further increase its investment in crypto and NFTs. The firm already owns considerable stakes in NFT projects like OpenSea, Autograph, and Cryptokitties.
Last month, they announced plans to raise $4.5 billion in a bid to further their Web3 ambitions.