Story Protocol maker secures $80m to transfer IP rights onto blockchain

PIP Labs, a core contributor to Tier 1 network Story Protocol, has raised $80 million to build an ecosystem where content creators can “grow their IP in the Age of AI.”

Programmable IP Labs, the brains behind blockchain startup Story Protocol, has raised $80 million in a Series B funding round, bringing the total value raised to $140 million.

PIP Labs wants to tokenize a “multi-trillion dollar intellectual property asset class” with “over 200 teams, totaling over 20 million addressable IP, developing Story across a variety of industries.”

The financing was led by a16z crypto, with others including Polychain Capital, Hashed, and Foresight Ventures also participating, the company said in an X announcement on August 21. According to reports, Story’s valuation has risen to $2.25 billion following the latest funding.

“We hope for a future where AI systems and creative people can happily coexist. For this to work, creators need a modern way to make sure they are compensated for their work.”

a16z crypto in a press release

Story’s mainnet will be launched in Q4 2024

Although still in the development phase, the funding is expected to help PIP Labs ensure a smooth launch of Story Protocol’s mainnet, which is expected later this year. However, it remains unclear whether the startup plans to offer a governance token for project management.

Founded in 2022, Story uses tokenization and a universal licensing agreement to transfer IP to the blockchain. According to the project’s official website, Story wants to connect real-world assets to smart contracts. It’s a “licensing agreement template” that combines real-world IP with on-chain tokenization. With the template, PIP Labs wants to provide a backing for the on-chain asset, allowing it to transfer intellectual property to the blockchain.

According to data from Crunchbase, Story raised $25 million in a Series A round in 2023, backed by companies including a16z crypto, Insignia Ventures Partners, DeFi Alliance, LLC, Foresight Ventures Investments, and Endeavor Group Holdings.