Revenue
| Metric | Value | As of | Source |
|---|---|---|---|
| Layoffs | 22% (Nov 2022), 20% (Feb 2023), 51 people (2023); headcount down 43% in a year | July 2023 | BetaKit |
Funding history
| Date | Round | Amount | Valuation | Investors | Source |
|---|---|---|---|---|---|
| Sep 2021 | Equity round | US$250M | US$7.6B (reported) | Coatue (lead); Andreessen Horowitz, GV, Version One Ventures, BOND, GIC | The Block |
| Mar 2021 | Equity round | US$305M | US$2.6B (reported) | Not detailed in source | The Block |
Investors
Overview
Dapper Labs is the Vancouver company behind CryptoKitties, NBA Top Shot and the Flow blockchain. NBA Top Shot, which lets fans buy, sell and collect officially licensed video highlights as digital collectibles (NFTs), was one of the defining consumer products of the 2021 crypto boom. Dapper Labs spun out of the Vancouver studio Axiom Zen in 2018, and Roham Gharegozlou is its CEO.
Few companies show the boom-and-bust cycle of private tech valuations as clearly.
Funding and valuation
Dapper Labs raised large rounds in quick succession during 2021, as interest in NFTs exploded. It raised US$305 million in early 2021 at a reported US$2.6 billion valuation. Then, in September 2021, it closed a US$250 million round led by Coatue, with existing investors Andreessen Horowitz, GV (Google's venture arm) and Version One Ventures, and new investors BOND and Singapore's GIC. A source familiar with the deal told reporters it valued Dapper at US$7.6 billion. The company itself didn't confirm the figure.
Coverage differs slightly on the timing of the earlier round, so check the primary announcements if you need exact dates.
The downturn
NFT trading volumes collapsed in 2022, falling by around 97% from their peak according to reports. Dapper Labs responded with several rounds of layoffs: 22% of staff in November 2022, another 20% in February 2023 and 51 more people later in 2023. BetaKit reported headcount had fallen 43% in a year, to 361. The company also faced a class-action lawsuit alleging that NBA Top Shot collectibles were unregistered securities.
The CEO said at the time that both Dapper Labs and the Flow network remained well capitalised, and that Flow had a separate pool of capital with several years of runway.
Revenue: what's public
Dapper Labs hasn't published its revenue. Its income has historically come from primary sales of digital collectibles and fees on secondary trading in its marketplaces, both of which swing sharply with crypto market sentiment. That volatility is the main reason a peak valuation can be so far from a later one.
Lessons from Dapper Labs
- Last-round valuations can be stale. No new priced round means the US$7.6 billion figure isn't a current market value.
- Preferences matter after a boom. Investors who came in at the peak hold liquidation preferences that affect how any future sale is split.
- Revenue tied to a hype cycle is fragile. Investors now ask much harder questions about how durable revenue is.
What this means if you're…
Researching the company: look at recent product activity, hiring and the Flow ecosystem rather than relying on the 2021 valuation. See how to research a private company.
A Web3 founder: Dapper's experience shows why investors now favour more diversified, less speculative revenue.
Sources
Every figure on this page comes from the public sources below. Where sources disagreed, we used the company's own announcement or a primary news report. Private-company data changes; check the date beside each figure.
Frequently asked questions
What is Dapper Labs's valuation?
Dapper Labs was valued at US$7.6 billion (peak, reported via a source familiar with the deal) as of September 2021, according to The Block. Private company valuations are set at funding rounds and can change significantly between them.
How much revenue does Dapper Labs make?
Dapper Labs is a private company and has not publicly disclosed its revenue. Estimates published by third-party sites are modelled, not reported by the company.
Who are Dapper Labs's investors?
Investors named in public announcements include Coatue, Andreessen Horowitz, GV, Version One Ventures, BOND and GIC.
When was Dapper Labs founded and where is it based?
Dapper Labs was founded in 2018 and is headquartered in Vancouver, British Columbia, Canada.