Social Marketplace HUG Raises $5M Seed Round Led by DIGITAL, OKX Ventures, to Build Creator-First Commerce for Artists

NEW YORK, April 12, 2023 /PRNewswire/ -- HUG, a social marketplace that connects digital art and NFT creators with current and prospective collectors, announced today the closing of a $5M round of seed funding led by DIGITAL, a Web3 investment fund founded by Mark Daniel and Benjamin Milstein (aka OhhShiny), whose portfolio includes leading Web3 startups Yuga Labs, Dapper Labs, Recur, MoonPay, and more. OKX Ventures, the investment arm of OKX, the second-largest crypto exchange by trading volume and a leading Web3 technology company, also participated in the round.

Other investors in the round were brought in to offer the company strong strategic partnerships, while also offering it a global footprint mirroring the Web3 ecosystem. They include: L'Oréal's BOLD corporate venture fund, Venrex, Jae Holdings, Cryptology, Samara, and Aa Sons.

Launched in February 2022, HUG was founded by CEO Randi Zuckerberg, the creator of Facebook Live and award-winning Broadway producer. She was later joined by Singaporean investor and entrepreneur Debbie Soon as Co-founder and Chief Growth Officer. HUG will use the investment to accelerate product growth and integrate market leading creator-first commerce features with its existing social curation and discovery tools.

NFTs are expected to grow 34% annually and reach over $210 billion in market size by 2030, according to Grand View Research. Digital ownership through NFTs has made art more accessible, and helped creatives find, connect, and monetize from new audiences. Yet, creators who have embraced NFTs still struggle with discovery and the challenges of managing multiple sales and marketing platforms to cater to both crypto native and crypto curious audiences.

"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."

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 rewarded with HUG Points that are exchangeable for 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.

In a space where creators can feel invisible, HUG is focused on helping artists deepen their connection with collectors, with functionality coming to support that. Soon, artists will be able to post and share updates directly to collectors, while also turning their profiles into storefronts with support for both physical and digital products. HUG will be rolling out its first integrated storefront in the summer featuring digital art and merchandise from renowned artist and poet Amber Vittoria.

"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.

"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 . "

About HUG

Founded by Randi Zuckerberg, HUG is a social marketplace that allows artists to sell digital and physical goods, and connects them with current and prospective collectors. Through a community-driven, decentralized curation process, HUG spotlights diverse creators, including and especially those from underrepresented and marginalized communities. HUG is also known for HUG Studios, which offers educational and advisory programs for Web3 startup founders and creative entrepreneurs. In November 2022, HUG consolidated the Meta Angels NFT community under its parent company Assemble.

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About DIGITAL

DIGITAL is a multi-stage and multi-sector venture capital firm founded by Mark Daniel and Benjamin Milstein investing in the evolution of human identity.

About OKX

OKX is the second largest global crypto exchange by trading volume and a leading Web3 ecosystem. Trusted by more than 20 million global customers, OKX is known for being the fastest and most reliable crypto trading app for investors and professional traders everywhere.

As a top partner of English Premier League champions Manchester City FC, McLaren Formula 1, golfer Ian Poulter, Olympian Scotty James, and F1 driver Daniel Ricciardo, OKX aims to supercharge the fan experience with new financial and engagement opportunities. OKX is also the top partner of the Tribeca Festival as part of an initiative to bring more creators into Web3.

Beyond OKX's exchange, the OKX Wallet is the platform's latest offering for people looking to explore the world of NFTs and the metaverse while trading GameFi and DeFi tokens.

SOURCE HUG