Popular NFT collection Pudgy Penguins has confirmed its plans to raise up to $10 million in funding, which would give the project a valuation of $50 million. This news comes as several other high-profile NFT projects have also attracted substantial venture capital investments.
Pudgy Penguins, consisting of 8,888 unique, Ethereum-based cartoon penguins, is discussing a seed round with potential investors. According to documents obtained by The Block, these discussions include a pitch deck, term sheet, and investor outreach. Pudgy Penguins CEO Luca Netz has now confirmed the fundraising efforts.
Since acquiring the project for $2.5 million in April, Netz has expressed plans to introduce a toy line and hinted at a possible token launch, slated for April 2024. The current $10 million funding round is structured as a Simple Agreement for Future Equity (SAFE) round, with attached token warrants, a common arrangement in crypto-focused venture capital.
Despite the approaching “crypto winter,” prominent NFT projects continue to attract venture capital interest. Chiru Labs, the team behind Azuki, is nearing a $30 million raise, while Doodles raised $54 million in September, Proof Collective (creator of Moonbirds) secured $50 million in August, and Yuga Labs, responsible for Bored Ape Yacht Club, led the pack with a $450 million round in March.
Pudgy Penguins remains a highly followed NFT project, with a single penguin currently priced at around 3 ETH ($4,600). Since the project’s launch, nearly $100 million worth of Pudgy Penguins have been traded on secondary markets, as per OpenSea data.
We are happy to announce our $9M seed round, led by 1kx. pic.twitter.com/ozzA8rwL4H
— Pudgy Penguins (@pudgypenguins) May 9, 2023