Sports apparel and memorabilia firm, Fanatics, divested its ownership stake in Sports-focused company Candy Digital earlier this month. Following the reports, Candy Digital announced a Series A extension funding, with a new SEC filing providing the financial details.
Candy Digital was launched in 2021 with the mission of accelerating fandom with digital collectibles and experiences. Set up by Galaxy Digital, with Gary Vaynerchuk and Fanatics, it raised $100 million in a series A funding round at a $1.5 billion valuation.
However, crypto winter hit hard last year and it was swept with some unnerving challenges in the web3 world. NFTs lost their sheen and macroeconomic stimulants were lying low. Back in November, it announced a massive layoff and chopping of 33% of its workforce to face the onslaught. Just as the company downsized to weather the storm, more bad news followed. Candy Digital’s majority stakeholder announced the sale of its 60% share in the organization. New updates with respect to funding rounds will throw some light on the latest developments.
Candy Digital shows Resilience
Earlier this month Candy Digital announced a series A extension funding round but the finer details were not included. In a fresh new filing with the U.S. Securities and Exchange Commission (SEC), financial figures pertaining to the funding round were provided. As per the latest filing, Candy Digital has raised a whopping $38,449,997 from 14 investors in an equity offering. The raised amount represents more than half of the $68,188,480 that the company is looking to raise.
We build for the fans 💪
Today, we take the next step in our journey with a new round of investment led by some incredible web3 partners, including @galaxyhq, @ConsenSysMesh, @ConsenSys. https://t.co/AXX6tfVhJ3
— Candy (@CandyDigital) January 5, 2023
Despite these setbacks, Candy Digital has successfully raised a mammoth amount in its funding round. Backed by some strong players and pioneers, it surely is not looking back at the downfalls. Rather it is focusing on the way forward, bridging the gap. The Sports and entertainment disruptor has also released a plan on how it intends to use up its surplus inventory from the prior year.
The Story continues
In its own press release, CEO, Scott Lawin revealed that the funding would prove as an effective lubricant to help scale its platform. They would also be looking to form new partnerships in the future with known platforms. Galaxy Digital and ConsenSys Mesh along with 10T and others steered ahead this round. The successful fundraising demonstrates that innovative and disruptive platforms will remain valuable despite any obstacles.
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