Kiki World, a beauty startup founded last year, is leveraging web3 technology to involve consumers in co-creating products and owning a stake in the company. Recently, Kiki announced securing a $7 million seed funding round from investors including a16z’s crypto fund and The Estée Lauder Companies’ New Incubation Ventures, alongside others like Orange DAO and 2 Punks Capital.

Jana Bobosikova, co-founder of Kiki, believes that traditional brand loyalty experiences in the Web 2.0 era often result in mere exposure to more targeted ads. Kiki aims to change this by enabling community members to vote on product features before development. In return for their participation, voters earn points towards free products and receive digital tokens representing ownership in the company.

Bobosikova highlights the unique blend of internet engagement with consumer goods, stating that while such dynamics are familiar online, they’re unprecedented in the beauty industry.

Kiki’s on-demand production approach not only fosters community engagement but also minimizes excess inventory typically associated with cosmetics companies. Despite utilizing Ethereum to record product votes, Kiki ensures a seamless user experience, allowing participants to interact without the need to understand blockchain technology explicitly.

a16z’s decision to invest in Kiki was influenced by the startup’s participation in their 10-week crypto startup accelerator program. Arianna Simpson, a general partner at a16z, praised Jana Bobosikova’s expertise in beauty and understanding of web3, which sets her apart from founders in more traditional industries

Before launching Kiki, Jana Bobosikova, originally from the Czech Republic, served as the CEO of Epic Future Labs, a firm specializing in product development and brand innovations.

Arianna Simpson of a16z mentioned that Kiki is not the only company they’ve invested in that utilizes blockchain to reward customers. Last year, a16z led a $24 million Series A funding round for Blackbird Labs, a hospitality tech company with a loyalty program encouraging guests to dine at independent restaurants.

Currently, Kiki has introduced five product collections, such as a nail polish pen, allowing consumers to vote on the next color to be produced.

Looking ahead, Kiki aims to expand beyond beauty products, although this transition may take time due to the challenges involved in physical product manufacturing. Bobosikova emphasized the simplicity yet difficulty of aligning product offerings with customer preferences.