Web3 newsletter Paragraph raises $5 million and acquires blogging platform Mirror

Web3 newsletter publishing platform Paragraph raised $5 million in new funding on Thursday, in addition to acquiring Mirror, a blockchain-based blogging platform that will help the company improve its position in taking on traditional content-owned publications.

The fundraising was led by Coinbase Ventures and Union Square Ventures. Paragraph previously raised $1.7 million in pre-seed funding led by Lemniscap in 2022, including this round bringing the total raised by the company to $6.7 million.

Colin Armstrong, founder and CEO of Paragraph launched the company in October 2021 with the mission to give writers, decentralized autonomous organizations, non-fungible token developers, and other members of the blockchain community more control over content distribution and monetization .

The platform works by allowing content creators to encapsulate their content through ownership via non-fungible tokens, a type of blockchain-based token that represents ownership of digital assets. These digital items can be anything from images, files, music and video game items. These tokens can be bought, sold and traded for cryptocurrencies, but can also be exchanged for cash, allowing creators to generate income. In Paragraph’s case, they represent newsletter memberships represented by NFTs, and the tokens allow writers to capture different parts of their newsletters and monetize their content.

“At Paragraph, we have always strongly believed that new onchain primitives can redefine the publishing landscape,” said Armstrong. “We’ve helped thousands of creators build direct relationships with their audiences.”

Writers at Paragraph get access to a number of tools, including email automation, that allow them to reach members whenever they want and customize contacts. The company also introduced an AI-powered writing assistant to help creators write better and faster. Using underlying blockchain-based technology and NFTs, creators can also release collectible, token-based content that can be bought, sold and traded by members of the newsletter community, adding revenue streams.

Founded in late 2020, Mirror operates an Ethereum-based blog publishing platform that provides writers with tools to write and publish using decentralized technology. The toolset includes decentralized content storage, decentralized domains, crowdfunding campaigns, NFT tooling, and NFTs for writing collectibles.

“When I founded Mirror, I was betting on the potential of platforms that combine content with valuable marketplaces,” said Denis Nazarov, founder of Mirror. “What would it look like to give creators simple web3 primitives so they can manage their relationships with their fans and supporters, create new business models and new forms of patronage?”

With the acquisition, Armstrong will remain CEO of Paragraph and Nazarov will remain as an advisor. For customers, nothing will change in the short term and both Mirror and Paragraph will continue as normal as the two companies work to become a single platform for decentralized publishing.

Image: Pixabay