Quick take:
- Stacked has completed a $12.9 million funding round led by Pantera Capital with participation from GFR Fund and Z Venture Capital.
- The Web3 streaming platform said it will use the funds to scale operations in Latin America, India and SEA whilst also beefing up marketing and content acquisition.
- Stacked is leveraging web3 to provide an alternative to YouTube and Twitch.
Stacked has raised $12.9 million in a Series A round led by Pantera Capital with participation from GFR Fund and Z Venture Capital. The Web3 streaming platform is leveraging the rising adoption of decentralised technologies to provide an alternative to web2 platforms YouTube and Twitch.
Web3 is generally described as the next iteration of the internet, which uses emerging technologies like the blockchain, artificial intelligence, decentralised apps, and AR/VR devices to provide developers with the tools to build the metaverse.
Web3 has also gained popularity because it is the underlying technology that is helping to democratise ecosystems that rely on communities to grow. Streaming platforms like Amazon-owned Twitch and Alphabet’s YouTube are driven by content creators and their fans.
Stacked wants to leverage the same concept, but in its case, empower its creators and users to share in the success of the platform.
Stacked said it will use the funds raised to expand its ecosystem into Latin America, Southeast Asia and India, whilst also beading up its marketing and content acquisition campaigns.
Unlike web2 streaming platforms that have left creators complaining due to their less incentivised revenue sharing models, the Los Angeles-based web3 startup wants to give more revenue to users whilst also making them part owners of the platform via a native governance token mechanism.
“If you actually give creators ownership over the platforms that they helped make valuable, then you really align the incentives of both the platform itself, the developers and the content creators,” Stacked founder and CEO Alex Lin told CoinDesk.
Among the content types targeted by Stacked include gaming, watch parties, live fan chats, and other lifestyle content. The platform is essentially taking some cues from Twitch’s content strategy that has seen it become one of the most popular live video streaming platforms alongside YouTube.
Stacked will also activate donations and subscriptions enabling creators to receive fiat or crypto from their fans.
According to the announcement, governance tokens earned can also be used to secure a position in the featured section of the platform and qualify for a higher revenue share.
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