Neo-Creator Loyalty Bank Zurp Raises $5M and Goes Crypto

[ad_1]

Illustration: Shoshana Gordon/Axios

What do you do if you created a crypto startup and you look around and all you see is dumpster fires? You pivot quickly or wait.

Why it matters: The crypto contagion is spreading rapidly and forcing many space-connected businesses to rethink or rebrand.

Leading the news: Zurp, a neobank allowing fans to earn points to use on creators, announced that it had raised $5 million in pre-seed funding.

Note: Originally conceived as a crypto company when it raised capital, Zurp focused on traditional fintech after the crash. It won’t be alone.

Details: “We were originally building a crypto company in the DeFi space,” co-CEO Troy Osinoff told Lucinda. “When we saw the writing on the walls with Luna, we decided to do a hard pivot.”

Zurp raised a portion of that $5 million in November 2021, while the company was still focused on selling a DeFi yield product. Shortly before its launch, the Luna-linked Terra USD crashed in the spring of 2022. Investors in the round included New Form, Launchpad VC, OVO Fund, Darling Ventures, and Animal Capital.

How it works: Officially launching later this quarter, Zurp offers users a secure credit card linked to a creator within the company’s network.

Swiping the card gives fans points to redeem rewards with said creator. This can include early access to event tickets, a meet and greet, a custom video, or an invite plus one at a streaming price. The creator who might be a YouTuber, an esports team, TikToker then gets a share of the interchange fee, Osinoff says.

Of note: Former FTX Ventures director Amy Wu is also an investor, although she made this particular investment before joining the now bankrupt exchange.

[ad_2]