Blockchain gaming giant and venture capital firm Animoca Brands plan to raise $1 billion to $2 billion as part of a new Metaverse fund called Animoca Capital, Nikkei Asia reported. According to Yat Sui, Animoca’s co-founder and CEO, the fund aims to invest in late-stage mid-metaverse companies. It will focus on digital property rights for NFTs, end up in the metaverse, and serve as a “good entry point” for investors to gain access to Web3 companies.
Animoca Brands has become the largest blockchain investment entity in Asia by being an early investor in projects such as OpenSea, Dapper Labs, Yield Guild Games, Star Atlas, and Axie Infinity developer Sky Mavis. However, Animoca has several sponsors, such as Temasek and True Global Ventures, who now want to invest directly in late-stage companies with less risk and not just have exposure to Animoca’s portfolio companies, hence the new structure of Animoca Capital. “The fund will focus on stock optimization,” Sui told Nikkei Asia, outlining the need for a separate investment vehicle. As a background, optimize performance. So, it’s different.
“Their first investment in a startup is expected to be made next year, and there will be no geographic restrictions on how startups are evaluated, he added. Animoca did not immediately respond to Blockworks’ request for comment.
Animoca Brands has more than 340 holdings and dozens of subsidiaries in the Web3 space, including The Sandbox. According to a letter from the President, combined portfolio investment and digital asset reserves were estimated at approximately $5.7 billion as of June 2022. Animoca “built an open Web3 and facilitated an open Metaverse” and raised $358 million in January and another $110 million in September. He was also a partner with Yuga Labs on the Otherside Project, Labs’ Yuga Yacht Club Bored Ape Metaverse game.
And recently, it announced a partnership with esports company FaZe Clan to co-produce events and games in The Sandbox.