Paradigm, a16z Back $12M Round for Blockchain Game Platform LootRush

The Steam-like platform makes it easier for new users to try play-to-earn games.

AccessTimeIconMay 5, 2022 at 3:00 p.m. UTC
Updated May 11, 2023 at 6:49 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

LootRush, a Steam-like platform for blockchain games, has raised $12 million in a seed funding round led by Paradigm with participation from Andreessen Horowitz (a16z).

Paradigm and a16z raced to the top of the crypto venture capital leaderboard last year with a16z launching a then-record $2.2 billion fund in July, which was topped by Paradigm’s $2.5 billion vehicle announced in November.

  • Sriram Krishnan: AI, Crypto and Entrepreneurship
    30:00
    Sriram Krishnan: AI, Crypto and Entrepreneurship
  • a16z Crypto CTO on ZK Projects ‘Jolt’ and ‘Lasso,’ State of Crypto Tech Research
    12:55
    a16z Crypto CTO on ZK Projects ‘Jolt’ and ‘Lasso,’ State of Crypto Tech Research
  • Eco App CEO on Launching 'Cash-Like' Crypto Wallet 'Beam'
    06:18
    Eco App CEO on Launching 'Cash-Like' Crypto Wallet 'Beam'
  • Venture Capital Firm a16z Unloads $7M of MKR Tokens as Price Soars
    03:46
    Venture Capital Firm a16z Unloads $7M of MKR Tokens as Price Soars
  • LootRush offers a quick-start platform for blockchain games, which typically have a more complicated on-boarding process than traditional video games. The blockchain-agnostic platform also offers non-fungible token (NFT) rentals for game play, which cuts the cost for a new gamer and earns yield for the NFT owner.

    Popular play-to-earn game Axie Infinity is the only game available to play on LootRush at this time. Users can create an account quickly with a username and password, select the playing program that best suits their needs and then pay a small entry fee and, if desired, the NFT rental fee using a payment card. The platform plans to roll out additional titles throughout the year, including CryptoKitties and NBA Top Shot.

    The capital will be used to add staff globally and to buy NFTs at scale, LootRush CEO Anderson Ferminiano told CoinDesk during an interview.

    LootRush’s genesis

    “How we came up with the idea was that a friend of mine tried to play a crypto game last year, and it took him about three hours before he gave up even after spending $1,000 on NFTs,” Ferminiano said.

    “Bringing a lot more gamers into the space and making it mainstream requires making the experience very easy and fast,” he continued.

    Founded in late 2021, LootRush is based in the U.S. but has a fully remote team across the U.S., Latin America, Europe and Asia.

    Other participants in the funding round included Y Combinator and a group of angel investors that included the founders of Axie Infinity and Dapper Labs, the creator of CryptoKitties and NBA Top Shot, among others.

    Ferminiano said that enabling other business models like rentals can make the cost to start playing or trying a game much lower, potentially bringing a new wave of users into the sector.

    “We want to make sure that we on-board NFT owners, gamers and game developers,” Ferminiano said. “We are constantly partnering with NFT owners who want to find players to scale as well.”

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Brandy Betz

    Brandy covered crypto-related venture capital deals for CoinDesk.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.