With NFT.NYC 2023 underway, exciting news came from Web3’s social curation platform, HUG on Wednesday after it announced that it closed a $5 million USD seed round, led by DIGITAL, a Web3 investment fund founded by Mark Daniel and Benjamin Milstein (aka OhhShiny), whose portfolio includes Yuga Labs, Dapper Laps, Recur, MoonPay, and more.
Other investors in the round included OKX Ventures and L’Oréal Groupe’s BOLD corporate venture fund, Venrex, Jae Holdings, Cryptology, Samara, and Aa Sons.
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HUG has officially closed a $5M round of seed funding led by @ohhshiny @markdaniel94 of @digitaldotxyz, with @OKX_Ventures & @LOrealGroupe BOLD ventures.
With that, it's time to introduce a brand new HUG, with art and artists front and center.
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— HUG ? | Apply for an Artist Profile (@thehugxyz) April 12, 2023
Launched in February 2022 by Randi Zuckerberg and Debbie Soon, HUG is a social curation platform that supports aspiring founders and builders in Web3 through their native creator accelerator, HUG Studios. The studio also provides education and mentorship in helping individuals discover up-and-coming Web3 creators and communities.
The new investment, according to the press release, will be used to accelerate product growth and integrate market leading creator-first commerce features with its existing social curation and discovery tools.
"HUG is excited to be at the forefront of democratizing access to art, and changing the narrative around how artists get recognized and discovered", said Randi Zuckerberg, founder and CEO of HUG. "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."
Since its inception, HUG has collectively curated over 1,000 creators, aiming to build a communal space that is driven by a love of the arts, beyond an unpredictable algorithm.
A recent report from Grand View Research revealed that NFTs are expected to grow 34% annually and reach over $210 billion USD in market size by 2030, necessitating the need for democratized access to art and artist storytelling.
A tweet on Wednesday by HUG also says that the investment will allow the platform to shift from “social discovery” to a “social marketplace,” describing the newly rebranded HUG as a “Facebook meets Etsy.”
“Other marketplaces prioritize profits over the creators that built them. At HUG, we’re here for the art, and that’s why we’re putting artists first,” the tweet read in part.
"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," said Mark Daniel, Managing Partner at DIGITAL. "We are excited to partner with Randi and her team to build the future of creator-first commerce.
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.
Collectors are then rewarded with HUG Points that are exchangeable for IRL rewards when they vote on artists they wish to see on the platform, as well as when they engage directly with creators by leaving them thoughtful comments and reviews.
GM ✨ ? i just got a new review on the @thehugxyz for my Artist page. I’m not sure who wrote this but thank you for your loving words! ?I actually had nightmares all night so this was a really great pick me up this morning ✨Thank you for making my morning! ? #NFTCommunity pic.twitter.com/yqbTcaPqzk
— ?HelloMari.ETH ? (@HelloMariMon) April 5, 2023
These artist profiles will also evolve into virtual storefronts, where creators will be able to connect with collectors to sell both digital and physical goods.
"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," said OKX Ventures Partner Jeff Ren. "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 . "
HUG says that its collector management tools will also ensure that important updates and art drops don’t get lost in social feeds, which happens often across Twitter and Discord servers.
It also announced its first digital art and merch drop from painter and poet Amber Vittoria. Vittoria recently dropped her second collection of socks and t-shirts with design and retail manufacturer APTHCry (pronounced “Apothecary”).
“Artists, don’t feel like you need to be on a list to be considered successful! While public recognition and accolades are always nice, remember that you are seen and an inspiration to all your collectors, even if no one else is talking about it,” said HUG co-founder Debbie Soon in a tweet on Tuesday kicking off NFT.NYC 2023.
In other news, read about Cool Cats and Futureverse’s new strategic partnership.
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