Startup Co:Create has raised a $25 million seed round to help NFT Collections launch its own tokens, the company announced Tuesday.
The round was led by Andreessen Horowitz (a16z), with participation from Gary Vaynerchuk's VaynerFund, Packy McCormick's Not Boring Capital, Amy Wu and RTFKT.
The startup is using its "factory method" protocol to generate customizable tokens and treasuries for participating projects so that royalties can be paid out in this native token using a decentralized exchange method (DEX), according to a press release.
"We want the NFT to do more than just sit in your wallet in a thoughtful way that makes it a utility rather than a security," said Tara Fung, CEO of Co:Create, in an interview with CoinDesk. "I think we need more guidance from the SEC and other regulators. I'm confident we'll get more clarity and less ambiguity in the future."
The push for token-linked NFTs comes in the wake of the continued success of ApeCoin, the token tied to Yuga Labs' Bored Ape Yacht Club and Mutant Ape Yacht Club NFT collections.
ApeCoin was launched in mid-March, with a portion distributed to NFT holders of various Yuga Labs collections.
After initial price fluctuations, the token now has a market cap of nearly $3 billion. Yuga Labs used the token for its recent "Otherside" land sale, in which NFTs tied to virtual properties were sold exclusively in ApeCoin.
Co:Create says it is already in talks with a handful of prominent NFT collections that participated in the seed round and are seeking their own token launches in the style of Yuga Labs' ApeCoin, with partnership details to be announced individually in the coming months.