a16z Crypto leads $16.8 million funding round for Web3 startup IYK

IYK, following a seed round of funding, raised $16.8 million from a16z Crypto and other investors. The startup helps brands create digital experiences for their customers.

A graduate of the a16z Crypto Startup School was also backed by 1kx, Collab Currency, Lattice Capital, Palm Tree Crew, Synergis Capital, Coop Records and other investors.

IYK enables brands, musicians and artists to create ‘digital experiences’, helping them reward customers and fans, and stay connected with their community.

The startup’s products include NFC-chip, which tokenizes physical products and events, including in NFT form. IYK also provides API-developer interfaces and ‘modules’ for further customizing ‘experiences’.

According to the team, since its founding in 2021 the firm has attracted over 100 creators from fashion, music and art. To engage more users, IYK is launching a self-service platform that will help shape digital experiences.

“We do not tie you to a chip type, an authentication system, or even to our domain,” The Block co-founder Ryan Ouyan.

According to the startup’s representative, this sets it apart from rivals such as Collect.ID and LNQ, which introduce users to their ‘experience’ firsthand, requiring registration or downloading a mobile app.

IYK is an acronym for If You Know and the shortened version IYKYK (If You Know You Know), Ouyan explained. According to him, it is important for users to know that in a given item such as a toy or clothing, a chip is embedded.

“The idea is about the ‘knowing’ that a digital universe exists, into which the owner can ‘teleport’, by interacting with their physical product. A virtual world that changes over time and rewards participation,” he added.

Earlier, Bastion, the a16z Crypto Web3-company, closed a $25 million seed round of financing. The startup aims to simplify the adoption of blockchain-based technologies by firms and attract new users.

In the second quarter, Web3 startups attracted about $1.8 billion in venture funding — a figure down 76% from the same period in 2022.