Animoca Brands Plans $2 Billion Metaverse Fund to Support Established Projects – Metaverse Bitcoin News – Bitcoin News
by Sergio Goschenko
Animoca Brands, the parent company of metaverse projects like The Sandbox, has announced it plans to launch a $2 billion metaverse fund. The new fund, which would be focused on returns for potential investors wanting to get more Web3-related capital exposure, will focus its activities on companies in the mid-to-late investment stages.
Animoca Brands, one of the most recognized metaverse and NFT companies in the ecosystem, has announced plans to launch its own metaverse fund. According to statements made by co-founder Yat Siu to Nikkei on Nov. 29, the company aims to raise between $1 billion and $2 billion for this new initiative.
Animoca Brands, which has raised $804 million from several investors in several funding rounds already, aims to put the new funds (once raised) into established metaverse platforms in the mid-to-late investment stages, as it seeks to prioritize revenue over developing the Web3 environment, allowing partners to have direct investments in more companies in the area.
On the reasons behind this decision, Siu stated:
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. However, raising funds in the aftermath of FTX’s fall and in current market conditions is different. However, Siu believes that, although challenging, the position Animoca Brands is in facilitates this task. He explained:
In a bear market, what often happens is concentration goes to market leaders.
Furthermore, Siu stated Animoca believes that the metaverse and Web3 gaming can be strong vehicles for cryptocurrency adoption, with actors that see the function of these platforms differently from cryptocurrency traders and speculators.
Animoca is not the only company that is considering the potential of Web3 gaming and the metaverse in the future. On Nov. 29, Game7, a gaming-focused DAO (decentralized autonomous organization), announced the launch of a grants program that would invest $100 million in different sectors of the Web3 gaming industry, including the tooling to allow programmers to streamline gaming development.
The company did not offer more details on the actors that would be interested in investing in this fund or the launch date of the proposed instrument.
What do you think about Animoca Brands’ proposed $2 billion metaverse and Web3 gaming fund? Tell us in the comments section below.
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.
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