Talk that the decentralized technology of Web3 will soon supplant the established internet puts young startups in a quandary: they can stick to their existing technology and business models or make a costly and risky overhaul onto the blockchain.
Some, like Rosebud AI, are making the leap. The three-year-old startup began by operating a subscription-based app, called TokkingHeads, that used artificial intelligence to help creators make animated images. But this year it shifted its focus and now plans to generate revenue through the development of NFTs, the blockchain-based digital assets that creators can make to use in virtual worlds.
That new focus helped the eight-person company raise $6.6 million in a deal led by Animoca Brands, VC firm and blockchain gaming company, with investors including Khosla Ventures, Foothill Ventures and Sfermion. In March 2020, Rosebud raised $2.2 million in seed funding led by Khosla Ventures. Details of the latest funding have not previously been reported.