Animoca Brands’ subsidiary TinyTap has successfully raised $8.5 million in its latest funding round as the platform works towards disrupting the education industry using Web3. The funds will help the established Web2 ecosystem expand further into the Web3 realm where it will supercharge the earning potential of its content creators.
The latest round of funding was led by investment firm Sequoia China with additional support from Liberty City Ventures, Kingsway Capital, Shima Capital, Polygon, GameFi Ventures, and a few others. Essentially paving the way for TinyTap to continue blazing a trail through the burgeoning EdTech sector.
Established in 2012, TinyTap prides itself on being the world’s largest education games library, boasting over 250,000 activities designed by teachers and publishers, and serving over 9.2 million members worldwide. It was acquired by Animoca Brands last year for $38.88 million, who then helped the company break into the Web3 industry. Shortly after the acquisition, TinyTap launched its first Web3 project in the form of Publisher NFTs, which allowed creators to further monetize their content.
During the initial sale of the NFTs, TinyTap raised an impressive 243 ETH via auction, which equated to approximately $352,000 at the time. The tokens then essentially serve as the publishing rights to the educational content held within, and enable creators to sell those rights to third party publishers, while also receiving a modest royalty fee on an ongoing basis.
Blazing an EdTech Trail Through Web3
According to data from TinyTap, Publisher NFT holders have earned a minimum of 8.2% from their co-publishing efforts since the auction took place in the last quarter of 2022. This model has proved to be extremely effective for TinyTap. Co-publishing has allowed content creators to save time and concentrate on creating high-quality courses, while their partners focus on promoting them.
Commenting on this success, Yogev Shelly, the CEO of TinyTap, notes that “Our Publisher NFTs genesis auctions demonstrated that the Web3 community is well suited and willing to support educators and educational content via this new powerful and equitable incentive system.”
It’s a sentiment that is shared by Yat Siu, cofounder and executive chairman of Animoca Brands. “Teachers and educators are among the most important content creators and contributors in society, and yet their wages typically do not reflect their critical importance. This is why we’re incredibly excited at the Web3 opportunities that TinyTap is exploring in the field of education.”
With an 84% stake in TinyTap, Animoca Brands set out to leverage blockchain technology and create novel opportunities for educators across the globe. So far, it seems that their plan is unfolding flawlessly.
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Basil is an avid fan of blockchain technology and all its innovations, and he is passionate about sharing this narrative with his audience. He has spent over five years in the crypto space, specializing in research and creating Web3 content for various media outlets around the globe.