Animoca Brands Plans $2 Billion Metaverse Fund to Support Established Projects – Animoca Brands, one of the most well-known metaverse and NFT companies in the ecosystem, has revealed its intention to form a metaverse fund. According to statements made to Nikkei on November 29 by co-founder Yat Siu, the company seeks between $1 billion and $2 billion for this new initiative.
Animoca Brands, which has already raised $804 million from multiple investors in numerous funding rounds, intends to invest the new funds (once raised) in established metaverse platforms in the mid-to-late investment stages, prioritizing revenue over developing the Web3 environment and allowing partners to have direct investments in more companies in the area.
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Siu explained the rationale for his decision as follows: “For a lot of traditional investors, investing in growth to a late stage is safer. It’s very different from investing in a seed startup, which has much higher risk.” The fund will be provisionally named Animoca Capital. Metaverse and Web3 gaming have been hot topics for investing lately.
Fundraising in the aftermath of FTX’s fall and under current market conditions is distinct. Siu believes that Animoca Brands’ current position, however challenging, aids this effort. He explained, “In a bear market, what often happens is concentration goes to market leaders.”
In addition, Siu added that Animoca believes the metaverse and Web3 games can be effective vehicles for cryptocurrency adoption, with actors who view the purpose of these platforms differently than cryptocurrency traders and speculators. Animoca is not the only startup contemplating the future potential of Web3 gaming and the metaverse.
On November 29, Game7, a gaming-focused DAO (decentralized autonomous organization), announced the beginning of a grants program that would invest $100 million in various sectors of the Web3 gaming industry, including the software that would speed game production for programmers. The company did not provide any information on the potential investors in this fund or the intended instrument’s launch date.
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