Programmable IP (PIP) Labs Funding Round

Programmable IP (PIP) Labs, the creator of the Layer 1 blockchain known as Story Protocol, has raised $80 million in a Series B funding round led by a16z crypto.

Investors

Other investors in this round included:
– Polychain Capital
– Scott Trowbridge, SVP and board member of Stability AI
– Adrian Cheng, K11 founder and billionaire
– Cozomo de’ Medici, digital art collector

PIP Labs announced this on Wednesday.

Funding Details

The company began raising funds for the Series B round in early summer and concluded it this month. The round was structured as equity with token warrants, as stated by Ben Sternberg, CFO of PIP Labs. This new funding brings the total raised by PIP Labs to $140 million, following a $54 million Series A round led by a16z crypto last year. Jason Zhao, co-founder and chief product officer, mentioned that smaller angel investments contributed to the total.

What is Story Protocol?

Overview

Story Protocol aims to tokenize intellectual property (IP) to make it programmable in the AI era. This allows individuals to own and control their original ideas, such as inventions and art. PIP Labs highlights concerns about IP theft in the AI landscape, claiming that tech giants profit at creators’ expense, potentially stifling future creativity.

Purpose of Story Blockchain

The Story blockchain enables creators to register their IP, track its usage, and protect their rights, ensuring they receive compensation whenever their work is used. Co-founder S.Y. Lee stated that Story will provide a sustainable path for online creativity, allowing creators to assert their rights easily without the need for legal intermediaries.

In addition, the platform will employ a proof-of-creativity protocol to turn static IP into programmable assets, facilitating licensing and automatic royalty payments.

Current Developments

PIP Labs reports that over 200 teams, covering upwards of 20 million IPs, are actively developing on Story, including:
– Ablo: An AI fashion design tool enabling customization through AI.
– Sekai: An AI storytelling platform for collaborative content creation.

Chris Dixon from a16z crypto noted that blockchains offer a robust solution for large-scale economic coordination, ensuring creators are compensated for their IP.

Mainnet Launch

Story’s mainnet is expected to launch later this year, utilizing the Cosmos SDK and being fully compatible with Ethereum’s Virtual Machine (EVM). Improvements have been made for IP optimization, such as cost-effective graph traversal and the proof of creativity protocol.

As for hiring, PIP Labs, based in San Francisco, currently employs around 40 individuals and seeks to add 20 more across various functions.

Industry Impact

Olaf Carlson-Wee from Polychain Capital expressed that Story is set to transform content and IP ownership similarly to how Bitcoin impacted finance, advocating for a decentralized IP system that reclaims ownership from big tech.

The Funding newsletter: Stay updated on the latest crypto funding news with my bimonthly newsletter, The Funding. It’s free. Sign up here!