Blockchain startup Libraro has secured a £2m equity investment for its platform that aims to direct publishing houses to new writing projects.
The London-based company is seeking to break up the age-old and largely unchanged book publishing industry.
Aspiring writers can post their manuscripts on the Libraro platform, where readers can read and rate them. Popular reads can then be accessed by publishing houses to invest in projects that already have a strong fan following.
Libraro calls this process "crowd reading". If a book project receives strong interest from a large number of readers, it signals to publishers that there is an invested audience.
The company has built its platform with blockchain tech, which it said can "ensure [the] integrity of the platform" by recording and protecting literary rights of uploaded material. Libraro also includes NFT collectables as bonus offerings to Users.
The investment came from Chain, with the blockchain software and consultancy firm taking a 20% stake. It follows the startup's participation in the web3 incubator programme Block Dojo.
"We're very excited to partner with Chain and leverage their expertise in blockchain technology," said Arsim Shilova, Libraro CEO.
"Their investment will help us build a state-of-the-art, secure and scalable platform for aspiring authors to showcase their work, protect their intellectual property, and engage with their audience."
According to the startup's pitch deck, seen by UKTN, Libraro has forecast £5m in recurring revenue and 500,000 users post-funding. The bulk of the new investment will go towards product development.
Christen-Ager Hansen, CEO of Chain group added:
"This solution has the potential to transform the publishing model by empowering readers and helping new writers get published. Our collaboration with Libraro is another great use case in another industry where we are making an impact."