The investment was led by Sfermion, a U.S. venture capital firm with expertise in metaverse and Web3 technologies. Joining Sfermion were prominent investors such as SM Culture Partners, Laguna Investment, Globalbrain (KDDI), and Foresight Ventures.
This latest round pushes Modhaus’ total fundraising to $12 million. Past supporters include UNOPND, a venture division of Web3 VC Hashed, Naver D2SF, CJ Investment and Futureplay.
The company aims to distinguish itself from traditional entertainment companies by enabling fans to directly influence and elevate artists, rather than solely producing content for passive consumption.
Its Cosmo platform allows fans to purchase digital photocards, which double up as voting tokens. These are backed by blockchain technology, which ensures transparent voting, as every token used leaves a clear record on the blockchain.
It cites the trajectory of idol group tripleS as an example of success via the platform. The band launched five albums, sold 170,000 copies and earned a nomination for “Best New Female Artist” at the 2023 MAMA Awards.
Cosmo empowers fans to actively participate in significant decisions related to idol group operations. Members from another group Loona — Haseul, Heejin, Kim Lip, Jinsol, and Chuu — have recently come aboard under the banner ARTMS. After revealing the trio unit “Odd Eye Circle,” which was a sub-unit within Loona, they are gearing up for the group’s debut in the first half of 2024, following the solo activities of members “Haseul” and “Heejin.”
Additionally, key decisions in the group’s activities, such as group photo shoot locations, the release of an English version of the digital single album, and fandom name, have been made through fans’ votes.
“K-pop fans possess keen insights. With their sharp eyes for talent and trendspotting, we aim to enhance artist value through amplified fan involvement,” said Jaden Jung, CEO and co-founder of Modhaus.
“Superfans are emerging as pivotal players in the music sphere. Strengthening the direct connection between fans and artists not only elevates the fan experience but also introduces a new level of engagement,” said Joseph Baek, EVP and co-founder of Modhaus.
Modhaus plans to expand Cosmo into a K-pop equivalent of LinkedIn or Kickstarter. The new funding will aid the expansion.
“We are thrilled to support Modhaus, a platform that has innovatively bridged the K-pop fandom with both tangible and digital realms through NFTs. [The new] investment signifies more than just financial backing; it’s a venture into melding the energetic world of K-pop with the expansive narrative of the metaverse. We […] explore the convergence of Kpop’s charm with the boundless opportunities of the immersive internet,” said Dan Patterson, general partner at Sfermion.
“Just as media and streaming have transformed the music industry, it is anticipated that web3 will be the next game changer for the music industry. Modhaus is expected to become a success story in the entertainment industry by effectively adopting blockchain technology,” stated Simon Kim, CEO and managing partner at co-investor Hashed.