HUG – a social marketplace that connects digital art and NFT creators with current and prospective collectors – announced the closing of a $5 million round of seed funding led by DIGITAL, which is a Web3 investment fund founded by Mark Daniel and Benjamin Milstein (aka OhhShiny).
OKX Ventures (the investment arm of OKX), the second-largest crypto exchange by trading volume and a leading Web3 technology company, also participated in the round. Other investors in the round were brought in to offer the company strong strategic partnerships while also offering it a global footprint mirroring the Web3 ecosystem. And they include L’Oréal’s BOLD corporate venture fund, Venrex, Jae Holdings, Cryptology, Samara, and Aa Sons.
Launched in February 2022, HUG was founded by CEO Randi Zuckerberg, who is known as a creator of Facebook Live and an award-winning Broadway producer. Zuckerberg was later joined by Singaporean investor and entrepreneur Debbie Soon as Co-founder and Chief Growth Officer.
HUG currently offers customizable and shareable profiles for artists to showcase their various collections and social links while making it easier for collectors to discover artists by involving them in the curation process. And collectors are rewarded with HUG Points that are exchangeable for rewards when they vote on artists they wish to see on the platform and when they engage directly with creators by leaving them thoughtful comments and reviews.
HUG is focused on helping artists deepen their connection with collectors with functionality coming to support that. And soon artists will be able to post and share updates directly to collectors, while also turning their profiles into storefronts with support for both physical and digital products. Plus HUG will be rolling out its first integrated storefront in the summer featuring digital art and merchandise from renowned artist and poet Amber Vittoria.
NFT market: NFTs are expected to grow 34% annually and reach more than $210 billion in market size by 2030 according to Grand View Research. And digital ownership through NFTs has made art more accessible and helped creatives find, connect, and monetize from new audiences. But creators who have embraced NFTs still struggle with discovery and the challenges of managing multiple sales and marketing platforms to cater to both crypto-native and crypto-curious audiences.
What the funding will be used for: HUG will use the investment to accelerate product growth and integrate market leading creator-first commerce features with its existing social curation and discovery tools.
KEY QUOTES:
“HUG is excited to be at the forefront of democratizing access to art, and changing the narrative around how artists get recognized and discovered. It is great to have the vote of confidence from some of the most seasoned investors in Web3 and consumer technology to deliver a product that will disrupt a multibillion dollar art industry, while paving new ways for how artists and collectors will engage in the future.”
– Randi Zuckerberg, founder and CEO of HUG
“While NFTs have created new ways for creators to monetize from their audiences, artists and collectors still crave deeper connection and conversation. Similar to how Etsy empowered artisans and craftsmen to find and connect with audiences all over the world at the beginning of Web2, we believe that HUG can do the same for a new generation of artists expanding their business to Web3. We are excited to partner with Randi and her team to build the future of creator-first commerce.
– Mark Daniel, Managing Partner at DIGITAL
“OKX Ventures is committed to bringing blockchain technology to the masses, and we believe that HUG is leading the way by bridging the gap between NFT utility, art, and the general public. We’re thrilled to provide the resources and product support necessary for HUG to grow and expand. The HUG platform is already seamlessly integrated with our non-custodial cross-chain wallet, and we look forward to collaborating on additional NFT launchpads and offline events in the future. “
– OKX Ventures Partner Jeff Ren
