Novel Commerce Bags $6 million
The NFT Play
Novel Commerce, a player in the nonfungible token or NFT space, is looking to create NFTs for brands. The company’s NFTs require no coding, which makes it unique. This aims to address online retailers’ push for market share via loyalty programs and new ways to make their customers feel special.
Subscribers pay Novel $99 per month for their software to create and sell NFTs. The start-up also takes a 10% cut of the eventual initial sale of the NFTs, and 1% to 2% on sales in the secondary market.
Lerer Hippeau Ventures Is In
Novel snagged $6 million in capital primarily from Lerer Hippeau Ventures. Amongst other investors, the venture-capital company was joined by VaynerFund, Costanoa Ventures, Roth Martin, Sugar Capital in support of Novel. Novel is now valued at $21 million.
The funding reflects brands’ interest in finding new ways to engage with their customers online as increasingly tighter privacy controls have constrained marketing efforts. As data tracking consumers’ online behavior becomes harder to access, some companies see NFTs as an innovative way to connect with their customers and carry out targeted marketing campaigns.
Marketers See Novel As Way to Connect
Novel’s current clients include apparel retailer Everlane and snack-seller TBH. Everlane may utilize NFTs while launching a new loyalty program. TBH is hoping the start-up can help it connect with customers in new ways, and it may do a pilot program offering limited-edition products or token holders.
Novel envisions their NFTs as a potential gateway providing owners privileged access to “exclusive shopping experiences.” This could position them as a cutting-edge partner for brands looking to get creative within virtual worlds, such as the metaverse, in a bid to grab consumer’s attention.
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