Animoca Brands, the parent company of metaverse projects such as The Sandbox, has revealed its plans to release a $2 billion metaverse fund. The new fund, that would be concentrated on returns for potential investors who want more exposure to Web3-related capital, will focus its activities on companies in the mid-to-late investment stages.
Animoca brands is planning Animoca Capital Fund release
Animoca Brands, one of the most popular metaverse and NFT companies in the ecosystem, has revealed plans to release its own metaverse fund. Based on statements made by the co-founder Yat Siu to Nikkei on November 29, the company plans to raise between $1 billion and $2 billion for the new initiative.
Animoca Brands, that has so far raised $804 M from multiple investors in different funding rounds, plans to deploy the new funds (post-raise) into established metaverse platforms in the mid- to-late investment stages, as it looks to prioritize revenue over The development of the Web3 environment, enabling partners to directly invest in more companies in the region.
Siu said about the reasons for this decision:
“For many traditional investors, investing in growth at a late stage is safer. This is very different from investing in a seed startup, that has much higher risk”.
The fund will be temporarily called Animoca Capital.
Raising funds
Metaverse and Web 3 gaming have been hot topics for investing recently. Nevertheless, raising funds after the FTX’s fall and in present market conditions is different. Moreover, Siu thinks that though it is challenging, the position Animoca Brands is in facilitates this task. He said:
“In a bear market, what usually happens is that the focus shifts to market leaders”.
In addition, Siu said that Animoca thinks that the metaverse and Web 3 gaming can be strong vehicles for cryptocurrency adoption, with actors which see the function of these platforms differently than cryptocurrency traders and brokers.
Animoca is not the only company considering the future potential of Web3 gaming and the metaverse. On November 29, Game7, a gaming-focused DAO (decentralized autonomous organization), revealed the release of a grants program which would invest $100 M in various parts of the Web3 gaming industry, involving the tooling that allows programmers to stream game development easier.
The company did not provide further details on the actors interested in investing in the fund or the release date of the proposed instrument.
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