Animoca Brands Plans to Invest $2 Billion in Web3 Startups

Cartoon human holding iphone with Animoca logo wearing headset next to game characters

Animoca Brands has announced it is launching a $2 billion fund to invest in upcoming metaverse businesses. Company co-founder and executive chairman Yat Siu shared in an interview with Nikkei Asia that he will be focusing mainly on Web3 projects centered around digital property rights. 

The co-founder has yet to determine the fund’s terms and conditions. However, Siu plans to make the first investment in the next year. 

Animoca Brands has been making meaningful contributions and collaborations in the Web3 space, promoting a digital, barrierless, open economy in the metaverse. The Web3 developer has also been investing in many upcoming projects for some time, the most recent being Roboto Games and Wanderers.

Developing the Ecosystem

Animoca Brands has quickly become a household name in the Web3 space, making significant contributions to the ecosystem with collaborations, investments, and developments. The developer has made about 380 investments in Web3 businesses. These mainly consist of NFT-based metaverse platforms and blockchain games. 

Animoca Brands’ latest developments include:

Yat Siu is an active advocate of Web3, voicing his support for blockchain games and metaverse platforms. In a recent interview, Siu highlighted that metaverse platforms could expect hundreds of millions of new entrants into the space thanks to the existing lineup of products. He added that the wave of higher caliber game productions coming into the space would attract a new generation of people joining the metaverse. 

Furthermore, over 3.2 billion traditional gamers exist in an ‘enclosed metaverse’ without owning their in-game assets. Animoca Brands’ chief has shared his optimism to help transition them to Web3 by encouraging them with digital ownership and a solid infrastructure. 

While the fund has yet to raise money, Siu is optimistic about targeting $2 billion. Siu shared with Nikkei Asia that the fund will emphasize metaverse businesses. It will also ensure that there will be no geographical restrictions for investment targets. 

Animoca Capital, Siu’s experimental metaverse fund, expects to make its first investment next year, with the primary purpose of developing the ecosystem. They will help investors gain direct exposure to mid-to-late-stage startups thanks to the fund. 

The Web3 industry has shown great progress over the years. Web3 companies have stayed strong and are continuing to expand. This is in contrast to other tech companies, considering the current chaos in the market. Major tech companies, including Facebook, Twitter, and Amazon, are laying off a significant portion of their workforces to withstand the effects of economic fear and uncertainty. 

Siu plans to pursue capital efficiency with this fund, considering the industry is more mature now. The chair plans to create more opportunities for investors to enter Web3 and believes the fund would be a good entry point for businesses. 

On the Flipside

  • Animoca Brands has been vocal with its investments, continuously building the space with its contributions and resources. The Web3 leader also recently announced a $358 million and $110 million fundraising in January and September, respectively.
  • They also contributed $10 million to the Web3 Industry Recovery Initiative, led by Binance in light of the recent crypto industry chaos. 
  • In a recent collaboration with Upland, Gala Games shared similar visions of promoting digital ownership and an open economy. Additionally, we have yet to see a partnership between the industry leaders. 
  • Animoca Brands’ valuation is approximately $6 billion. We have yet to see how it plans to raise about 30% percent of its valuation for a fund that expects to make its first investment next year. 

Why You Should Care

Animoca Brands’ upcoming fund could establish the infrastructure for the Web3 space. The fund’s plans also align with Animoca’s vision of building an open metaverse to welcome the next wave of billion users to Web3. Moreover, $2 billion is an enormous amount of money for the gaming sector. This is especially true for upcoming indie developers aiming to create professional productions. 

 

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Animoca Brands’ Co-Founder Believes Web 3.0 Will Soon See “Hundreds Of Millions Of New Users” – DailyCoin

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

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Insha Zia

Insha is a crypto-journalist from Pakistan specializing in Web3 gaming and the metaverse. At DailyCoin, he hunts for breakthroughs, interesting stories, and upcoming developments in the metaverse and Web3 gaming space. Since 2019, Insha has authored and ghost-written hundreds of articles for some of the world’s top tech publications covering various topics ranging from crypto how-tos to opinion pieces. Insha has a background in Computer Engineering, graduating from UET, Peshawar. He has ample experience working as a developer and a data scientist. He is also an avid gamer and has been a vocal member of various gaming communities. Insha's favorite genres are MMORPG and FPS. His interest in Web3 gaming grew during the DeFi boom in 2021 when he tried and reviewed Web3 games as a hobby. Today, he is an active member of numerous web3 gaming communities, contributes to the growth of the space, and constantly reports on events. As a seasoned gamer, Insha also provides insight on several upcoming Web3 projects from a gamer’s point of view. Moreover, during his time in the Web3 gaming and metaverse space, Insha has built valuable relationships with CEOs and Presidents of upcoming projects. Insha plans on leveraging his connections to provide accurate reports and news to DailyCoin readers.