Animoca Brands, the parent company of metaverse projects like The Sandbox is planning a $2 billion Metaverse fund to support established projects.
Metavers and Web3 games have been hot topics for investors lately. . Indeed, the new fund, which will be yield-driven for potential investors looking for more exposure to Web3-related capital, will focus on mid- to late-stage companies.
Animoca Brands, one of the most recognized companies in the metaverse and NFT ecosystem, has announced plans to launch its own metaverse fund. According to statements made by co-founder Yat Siu at the company’s press conference, it is an investment fund. Nikkei on November 29, the company aims to raise between $1 billion and $2 billion for this new venture.
Animoca Brands, which has already raised $804 million from several investors in several rounds of funding, aims to place the new funds (once raised) in established metaverse platforms in the intermediate or advanced investment stage, as it seeks to prioritize revenue over development of the Web3 environment, allowing partners to have direct investments in more companies in this area.
On the reasons for this decision, Siu said:
For many traditional investors, it is safer to invest in growth to a late stage. That’s very different from investing in a seed-stage startup, which has a much higher risk.
In addition, Siu said Animoca believes the metaverse and Web3 gaming can be strong vehicles for crypto-adoption, with players who see the function of these platforms differently from cryptocurrency traders and speculators.
Animoca isn’t the only company to see 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 grant program that will invest $100 million in various areas of the Web3 gaming industry, including tools to help programmers streamline game development.
The company did not offer further details on which players would be interested in investing in this fund or when the proposed instrument would be launched.