What the business is
Sorare is a web3 fantasy sports platform where users buy and sell NFT player cards; it earns mainly by issuing and selling new cards.
The bet
That centralising product development in Paris will improve collaboration across its football, baseball and basketball games, even if it means cutting New York roles.
Starting capital
$680M Series B in 2021 at a $4B valuation; no capital raised since.
How it started
Sorare, headquartered in Paris, raised a $680M Series B in 2021 at a $4B valuation and had not raised since. Web3 startups raised $7B in 2023 per Crunchbase, 74% below 2022, and video-game VCs told TechCrunch the web3 games market was much smaller than hoped.
What happened
In February 2024 Sorare laid off 22 employees in New York, about 13% of staff, and asked 11 more to relocate to Paris. CEO Nicolas Julia said it was centralising some functions, mainly product development, at the Paris HQ to collaborate more effectively. He said most laid-off roles would be backfilled in Paris, with more than 20 hires planned within six months, and that teams for U.S. customers and league partnerships would stay in New York.
What has to be true
Sorare wanted its product development team in the same space in Paris.
Web3 growth was taking longer than the company originally thought, per a source.
Investors had pulled back: web3 startups raised 74% less in 2023 than in 2022.
U.S. customer teams and league partnerships still needed a New York presence.
What can be applied
In a downturn, a company can rebuild its product team in one city rather than shrink, which looks like a layoff but is a relocation.
Aftermath
As of 2024-03-06 the layoffs and relocations were done, New York remained open for U.S. functions, and Sorare planned over 20 hires in Paris within six months.
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