The National Basketball Association is investing in Zigazoo Inc. as the kids’ social network gets more deeply involved with sports and media properties.
The funding round values the company around $100 million, according to a person familiar with the matter. Venture capital firm Liberty City Ventures led the $17 million investment, which was joined by Causeway Media Partners, Dapper Labs Inc., German media company OneFootball GmbH, Hong Kong-based Animoca Brands Corp. and social-media personalities Charli and Dixie D’Amelio. Existing investors include late-night host Jimmy Kimmel and tennis star Serena Williams’s venture fund.
Zigazoo is a TikTok-like video-sharing app for children that orchestrates challenges and activities for kids in short clips, while responses can be shared with friends in the social network. Chief Executive Officer Zak Ringelstein declined to share revenue figures but said most of its sales come from in-app purchases, with additional proceeds from partnership deals. The app now has more than 1 million users, he said.
Ringelstein said Zigazoo will use the fresh capital to develop more creator tools, create a marketplace for digital goods and expand into “emerging tech sectors” like augmented reality and the metaverse. In April, the social network started selling its first nonfungible tokens with Moonbug Entertainment, which owns kids’ shows CoComelon and Blippi.