Animoca Brands, a company focused on Web3 games, has announced that it is now targeting a $1 billion raise for a fund to inject aid into established blockchain projects. The figure is significantly lower than the $2 billion the company announced in November as the upper limit for this same fund.

Animoca Brands announces lower numbers for Web3 and Metaverse Fund

Animoca Brands, one of the most popular blockchain and Web3 gaming companies, has made a new announcement regarding its Q1 2023 fundraising goals. Yat Siu, co-founder of the company, recently stated in a Twitter Spaces chat which was looking to raise $1 billion from various parties for a fund tentatively called Animoca Capital, which would focus its activities on supporting already established Web3 projects.

This number is significantly lower than the target Siu set in November when he first revealed plans to launch this fund, stating that Animoca Brands expected to raise up to $2 billion. At the time, Siu recognized the challenge of raising that amount of funding, as the demise of FTX recently rocked the cryptocurrency world.

Siu stated that this event affected a dozen projects in the Animoca Brands portfolio, and the negative reaction affected the cryptocurrency market as a whole.

optimism remains

However, even with these events hampering the state of the crypto market and Web3, Animoca Brands is optimistic about the outcome of this effort. On the topic of reaching the newly announced goal, Siu explained:

Q1 is the target and then we’ll see what happens. It is fair to say that it is a challenging market. But we are quite interested.

However, as in November, Siu did not disclose investors interested in supporting this fund. The fund will focus on investing in late-stage metaverse projects and Web3 games, which are considered less risky than putting money into new start-ups.

Animoca Brands has no fundraising plans for itself yet this year. Data from corporate releases indicates that it had more than $200 million in cash and around $940 million in cryptocurrency considered liquid as part of its reserves for November. In July, the company raised $75 million, reaching a valuation of $5.9 billion.

Most recently, in September, Animoca secured $110 million in a round led by Temasek, a Singapore-owned venture capital firm, Boyu Capital and GGV Capital.

What do you think of the new goal announced by Animoca Brands for its Web3 fund? Tell us in the comment section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as someone who was late to the game, entering the cryptosphere when the price spike occurred in December 2017. With a background in computer engineering, living in Venezuela and being impacted by the rise of cryptocurrencies on a societal level, offers a different point of view. about the success of cryptocurrencies and how he helps the unbanked and underserved.

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