Summary:

SupeRare is the leading primary marketplace for on-chain digital art. The marketplace allows
artists to tokenize their digital art on Ethereum and sell it to a small but growing passionate
community of collectors. To date, SuperRare has enabled creatives to sell over $1.6M worth of
digital art on-chain and the platform appears to be hitting an inflection point, with $250K in
volume last month (up 47% m/m). We think crypoart has a chance to displace traditional art over
the next 10 years and SuperRare has a chance to be the defining cryptoart company.

We are leading a seed investment of [redacted] at a [redacted].

Key assumptions for SuperRare:

1) Cryptoart is going to be massive. The traditional art market is worth $3T+ in total
value despite being opaque, illiquid and exclusive to the rich. Digital art on Ethereum has
full transparency on pricing and sales, growing global liquidity and is inclusive to all. The
context by which people display their digital art is improving dramatically: digital frames
(Meural and The Frame by Samsung) and VR worlds (Sonium Space and Cryptovoxels).
In 10 years, we believe digital art has a chance to exceed $3T in total value and flip
traditional art.

2) Design, product and curation will persist as key differentiators for SuperRare in a
competitive market landscape for digital art. Superior design, product and curation
has enabled the platform to attract a strong community of the highest quality artists and
most important collectors and we believe this will persist over time.

3) Token model execution. Giving the community ownership of the platform via a
governance token makes a lot of sense for this platform, but the team needs to execute
and that will not be easy.

Team (8/10): The team is scrappy and has done a lot with a little so far. The co-founders are
CEO John Crain, his brother and CTO Charles and CPO Jonathan. They’re authentic and
passionate about art and not traditional Silicon Valley hustlers, which is likely a good thing given
the product and community. But they will need a healthy amount of hustle too to win big in a fast
growing market.

Product (8/10):

Design and UX are superior to other products in the category, though there’s lots of low hanging
fruit improvements that must be made post funding. They’re hiring a director of design and two
engineers to focus solely on improving the product.

July 2020
It’s important to note that Nifty Gateway may look competitive on the surface, but the truth is
Nifty has an off-chain product and fiat-onramps so we view it to be complementary to
SuperRare. SuperRare is unique because it allows artists t truly own and authenticate the works
that they sell on Ethereum. The one of one nature of all SuperRare authenticated artworks is
likely to command a premium in the market in the long-run.

Community (10/10):

They’ve got a small but extremely passionate community of artists and collectors using the
product daily. Here’s our notes from discussions with some artists (Pak, Hackatao, Marterium,
Thato Tatai, Osiris, Arc4g) and collectors (Whaleshark, Moca):
https://drive.google.com/file/d/1NrGnTj7OtgAM7Po8dGLeeBE7Rr-LicvU/view?usp=sharing

Artists love SR because it enables a new business model for them.

Collectors love SR because it gives them a new investable asset class, and they love to support
great artists.

Token mechanics (N/A): There’s no token yet, but there may be in the future. Rarible, an
inferior product by all accounts, launched with a token market cap of ~$20M.

Key Risks:

● Execution: The founding team is scrappy and passionate but not experienced and not
well-versed in scaling a team
● Competition: It’s early, they have a head start but we may new competition emerge in
the future

Recap (Team + Product + Community + Token mechanics: 8.7):

Tokenizing digital art is a use case that appeals to both new people (artists who came from
outside of crypto are already making $100K+ selling their works) and crypto natives (ETH
whales who have money to spend and want to buy digital art as an alternative store of value
and for signaling).

Overall, we think a great product, mission driven team and passionate community puts
SuperRare in a strong position to capture massive value as cryptoart grows in the future.

July 2020