Web3 Hardware Startup Spatial Labs Raises $10M in Funding Backed by Jay-Z

UTC by Tolu Ajiboye · 3 min read
Web3 Hardware Startup Spatial Labs Raises $10M in Funding Backed by Jay-Z
Photo: whittlz / Flickr

Spatial Labs recently secured substantial funding to provide cutting-edge hardware services for the Web3 space. 

Web3 hardware startup Spatial Labs has raised $10 million in funding led by Blockchain Capital. In addition, Spatial Labs also secured the backing of Jay-Z-owned venture capital firm Marcy Venture Partners. Adding the crypto hardware startup’s initial pre-seed fundraising of $4 million brings Spatial Labs’ total funding to $14 million.

Amid the Spatial Labs funding development, the platform’s founder, Iddris Sandu, provided insight into the company’s core agenda. In addition to sharing his vision, Sandu also opened up on his collaborative relationship with his renowned celebrity investor Jay-Z.

Sandu launched Spatial Labs back in 2019 in a bid to leverage the emerging metaverse. However, unlike most rising software and application-driven metaverse-centric companies, Spatial Labs focuses on the hardware that facilitates the concept. For instance, the company developed a 13-millimeter microchip, dubbed the LNQ One Chip, which is sewn or embedded into physical fashion items. Furthermore, each LNQ One Chip is also scannable with a smartphone using near-field communication (NFC) technology. Scans reveal the item’s details and create a digital replica for metaverse interaction.

Each physical chip also ties to a non-fungible token (NFT) on Polygon, at which point brands have unlimited, customizable options.

Speaking on the chip functionality and offerings, Sandu explained:

“We think our approach is going to create much more of an equitable metaverse. If you look at economies of scale, people don’t have the luxury of buying things twice over and over again.”

Spatial Labs Funding Would Facilitate Company’s Chip Technology

In addition to harboring many ideas for his LNQ chip technology, Sandu also spoke of the technology’s potential. According to the 25-year-old Ghanaian-American entrepreneur, LNQ can provide authentication services for luxury brands that already have metaverse plans. These luxury brands include Balmain, Gucci, and Prada.

Sandu explained these brands could embed loyalty programs directly into their products without needing customer sign-up services. According to the Spatial Labs founder, “…you can now think about your products unlocking tickets, specific interviews, podcasts, stuff like that. And so it’s for a lot of brands that want to find potential use cases for Web3 and the metaverse.”

Sandu cited higher gas fees as the main reason he chose the Polygon blockchain for his hardware over Ethereum. According to him, the Ethereum mainnet is not “really built for economies of scale.” Furthermore, the Spatial Labs founder also added that Polygon offers fees much closer to Visa or Mastercard sales.

Sandu’s hardware allows Spatial Labs to build without any bottlenecks that typically accompany app stores. For example, Apple’s (NASDAQ: APPL) app store enforces strict developer rules regarding NFTs and Web3 elements. In Sandu’s own words, the chip technology is independent of any app store approval and “works out of the box.” He also explained that the technology does not require any app installation to access its customizable metadata.

Jay-Z

Sandu described his working relationship with billionaire rapper mogul Jay-Z as perfectly harmonious. As one of the few founders of color of a hardware-focused company, the Spatial Labs pioneer cited Jay-Z among his inspirations. Referring to the Brooklyn native as a “big brother,” Sandu also calls Jay-Z a good friend and investor. According to Sandu, he and Jay bounce ideas off each other and share the same impactful vision.

Blockchain News, Business News, Cryptocurrency News, Investors News, News
Related Articles