Redeem, which provides Web3 technology that allows users to send and redeem non-fungible tokens (NFT) using their phone numbers, has raised $2.5 million in a pre-seed round led by digital asset-focused investment firm Kenetic Capital. The startup will use the funds toward its second-quarter product launch and to continue building out the core technology.

Investments cascaded into crypto companies during the bull market of 2021, but have slowed to a drip due to the crypto winter. Infrastructure projects, however, have maintained the highest level of investor interest, particularly projects that make it easier for non-crypto natives to enter the space.

Kansas-based Redeem allows users to link any crypto wallet on any network to a phone number in order to redeem so-called utility NFTs such as tickets, loyalty points or in-game items by scanning a QR code. Users can also send and receive NFTs through Apple's iMessage, WhatsApp or text messages without adding a crypto interface or gas fees.