Business News Report
March 24, 2023

Animoca Cuts Target For New Metaverse Fund to $800M

In Brief

Animoca Brands’ metaverse fund had an initial target of $2 billion, before being reduced to $1 billion.

Two people familiar with the matter said that the fund has been trimmed by another 20% to $800 million.

Animoca Cuts Target For New Metaverse Fund to $800M

Animoca Brand has slashed its target for its new metaverse fund from $1 billion to $800 million, according to Reuters, citing people familiar with that matter.

Last November, Animoca announced plans to launch a $2 billion metaverse fund before reducing the target to $1 million in January this year. The leading blockchain gaming and investment company raised $110 million at a valuation of $5.9 billion in September 2022.

According to Reuters, an Animoca spokesperson declined to comment on the fundraising plans. Animoca Brands has over $1.5 billion in assets under management and a growing portfolio of more than 380 investments, including Axie Infinity, OpenSea, Dapper Labs (NBA Top Shot), Yield Guild Games, Harmony, Alien Worlds, Star Atlas, and others.

The company’s multiple subsidiaries include The Sandbox, Animoca Brands Japan, Grease Monkey Games, Eden Games, Darewise Entertainment, TinyTap, PIXELYNX, and WePlay Media. 

Animoca Brands most recently partnered with Planet Hollywood to launch a physical members-only club for the web3 community.

The trimming of the fundraising target reflects a change in sentiment around the metaverse and the wider web3 space, especially since Meta decided to shift its focus from NFTs and metaverse to the latest technology craze, AI.

In his open letter to employees, Zuckerberg wrote that Meta – the company that had previously placed a $70 billion bet on the metaverse – realized that AI is the “most important technology” for the future of social media and that its “single largest investment is in advancing AI and building it into every one of its products.”

In another blog post published on Thursday, the tech giant made an argument against proposals by some European telecom operators to impose network fees on Content Application Providers (CAPs), such as Meta. 

The company said that “the development of the metaverse will not require telecom operators to grow capital expenditures for greater network investment” in order to increase capacity as “metaverse adoption for the foreseeable future will continue to be driven predominantly through Virtual Reality (VR).” This means that Meta’s initial vision for a fully immersive metaverse that blends the physical and virtual world will not materialize anytime soon.

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About The Author

Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via [email protected] with press pitches, announcements and interview opportunities.

More articles
Cindy Tan
Cindy Tan

Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via [email protected] with press pitches, announcements and interview opportunities.

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