Marina del Rey-based hardware and infrastructure company Spatial Labs has raised $10 million in seed funding. The round was led by Blockchain Capital with participation from returning VC firm Marcy Venture Partners.
The new capital will support the company’s efforts to build upon Spatial Labs’ blockchain-enabled technology, increase its reach in the consumer goods landscape and expand into other industries, such as media and entertainment.
“Our investment in Spatial Labs reflects our view that this technology presents an unparalleled opportunity to solve some of the landscape’s most complex challenges,” Bart Stephens, founder and managing partner of Blockchain Capital, said in a statement about the funding round, which was announced on Jan. 26. “By empowering new business models, delivering immersive experiences, and providing insights into consumer needs, Spatial Labs will continue to shape and power the future of commerce and connectivity in Web3.”
Founded in 2020 by 25-year-old entrepreneur Iddris Sandu, Spatial Labs is focused on creating hardware and software products that connect physical products to digital assets. The company refers to its first product, the LNQ, as “wearable internet.”
“Every piece of the Gen One Hardwear is embedded with a blockchain-enabled LNQ One Microchip, providing buyer and seller authentication and offering complete transparency into a product’s lifecycle,” Sandu said. “This technology provides an effective end-all solution for brands and retailers to reach and engage with their core audience, resulting in increased loyalty and consumer lifetime value.”
Sandu said that consumers are looking for new ways to shop. “While the idea of digital fashion and the metaverse is gaining popularity, shoppers are conditioned to make a purchase and receive a physical item in return as part of their shopping experience,” he said. “To drive increased consumer adoption, Spatial Labs is creating vertically integrated hardware and software solutions that serve as a physical entry point into the digital world – while delivering real-world utility.”
Sandu said he took the technology he grew up surrounded by and combined it with his understanding of hip-hop, fashion and culture. He said Spatial Labs will be responsible for causing a new generation to be more conscious of their environment, how they spend and how they buy.
“Looking ahead, we’re hyper-focused on launching technologies that reduce the barrier to entry into Web3 and augmented reality,” Sandu said.
Additional investment came from several founders and entrepreneurs, including Ron Burkle, co-founder of Yucaipa Capital and founder of Soho House group; Anthony Tolliver, former NBA Player and principal at Wealthlete Private Equity; and Bobby Wagner, Seattle Seahawks linebacker and partner at Fuse Venture Partners.
