K-pop Web3 Startup Modhaus Raises $8 Mln in Series A Round

South Korean blockchain-based K-pop startup Modhaus has successfully raised $8 million in its series A funding round led by Sfermion, a U.S. venture capital firm.

The funding will help the company expand and introduce more blockchain-based use cases in the Korean entertainment industry.

According to a statement, the funding round also saw participation from renowned investors such as SM Culture Partners, Laguna Investment, KDDI Open Innovation Fund III, and Foresight Ventures.

Modhaus was established in December 2021 and has already formed a popular K-pop girl group called “tripleS.” The group has over 1.74 million subscribers on YouTube, and it was formed through Modhaus’ innovative NFT voting system. Fans can purchase NFT photo cards using Modhaus’ COSMO app, which counts as voting tokens.

“By collecting NFT-format photocards of their favorite idol members, fans receive utility tokens that enable them to participate in decisions related to group operations, such as the activities of members, title songs, album jacket photo shoots, and selecting the city for these activities,” Modhaus said in the statement.

According to CEO and co-founder of Modhaus Jaden Jeong, K-pop fans often have a keen eye for talent and trends. He aims to increase the value of artists by getting fans more involved.

Meanwhile, Simon Kim, CEO and Managing Partner of Hashed, which invested in and incubated Modhaus, believes that web3 will be the next game changer for the music industry, just as media and streaming have transformed it.

GD Kim, COO of UNOPND, a venture division of Hashed, told The Block that COSMO has sold nearly 1.2 million digital photo cards to almost 130,000 dedicated K-pop fans since its launch. Kim said that Modhaus has set an excellent example of how blockchain technology can be used to promote mass adoption in the entertainment industry.