Redeem, a blockchain agnostic connectivity layer for Web3 that leverages phone numbers to send, receive and redeem utility NFTs, announced Wednesday its $2.5 million pre-seed funding round ahead of its launch, led by veteran blockchain investor Kenetic.
The round also includes local venture firms Flyover Capital and KCRise Fund. Funding is expected to be used to continue building the core feature set ahead of a Q2 strategic partner launch.
Founded by Toby Rush, a former Ant Group/Alibaba executive and founder of EyeVerify (acquired by Alibaba), Redeem allows users to link any blockchain wallet on any network to their phone number to redeem tickets, loyalty points, gaming items, and more by simply scanning a QR code. Redeem also enables people to seamlessly exchange NFTs using familiar services like iMessage, WhatsApp, or SMS — without the need for clunky crypto interfaces or gas fees.
“I love creating new user experiences that surprise and delight while hiding the complexity of the technology,” said Rush. “The ability to create, engage, and own assets outside the traditional walled gardens — like Apple or Google or Ticketmaster — while retaining trust is the biggest promise of Web3. To realize the power of this new technology, we have to make it approachable and familiar to the masses. That is why we are building the Redeem platform.”
Redeem is currently working with customers in retail, eCommerce, live events and gaming.
A key challenge for mass adoption of Web3 is the onboarding of new users which can be overly complicated, the company said in a press release. Too often, people have to change their normal way of doing things and learn technical know-how, just to set up their own crypto wallets and interact with blockchains, in order to enjoy the full potential of decentralized services and brand offers.
To overcome these challenges, Redeem builds on top of existing traditional frameworks and behaviors — leveraging people’s phone numbers, which are globally unique, easy to remember, and already connected to their business and personal contacts. This frictionless approach allows consumers to safely onboard, collect digital assets, and easily redeem their utility while being secured with the power of blockchain, according to Redeem.
Brands from Starbucks to Porsche and even major events such as the Coachella Music festival are beginning to roll out their own utility-laden NFTs, be it in the form of loyalty programs or NFT tickets. Yet, due to the inherent complexity of Web3 user and onboarding experience, many brands’ Web3 offerings have been slow to generate traction.
“Web3 is desperately in need of a frictionless connectivity layer between the user and the blockchain. We aim to provide that infrastructure, allowing anyone to tap into web3 just by using their phone numbers,” Rush added.
Ultimately, Redeem allows people to access everything — physical and digital commerce, crypto wallets, blockchain gaming, Web3, metaverses, and much more — with just one phone number, he said.
“Adoption is the Holy Grail of Web3. Redeem’s core features allow users to access the universe of Web3 in seconds with no prior crypto blockchain knowledge,” said Jehan Chu, founder of Kenetic. “This is a game-changer for traditional enterprise companies who want to reduce cost and drive new user engagement via Web3 without complicated or risky crypto processes.”
Apart from Kenetic, Flyover Capital, and KCRise Fund, Redeem’s $2.5 million pre-seed funding round also saw participation from Monochrome Capital, Kauffman Fellows spinout VC3 DAO, The Fund, CMT Digital, and Palantir-alumni fund KESTREL0x1.
