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(Kitco News) – Animoca Brands, one of the largest firms in the Web3 gaming arena, is preparing to launch a $2 billion fund dedicated to investing in metaverse companies.
The new Animoca Capital fund was revealed by the company’s CEO, Yat Siu, during an interview with NikkeiAsia. The fund is expected to make its first investment in 2023.
Animoca Brands is no stranger to investing in the non-fungible token (NFT) and Web3 gaming space, as the company made more than 60 investments in the first half of 2022 and has invested in a total of 340 projects since its inception. .
The firm is also behind some of the most popular projects in the space, including its metaverse gaming platforms The Sandbox, Blowfish Studios, Grease Monkey Games, and Eden Games.
The Animoca Capital fund is being launched to help develop the metaverse ecosystem and increase the opportunities available for investors to access Web3 companies, according to Siu. “They want more direct exposure to mid- and late-stage companies, and this is the role of a fund,” she said.
The CEO went on to describe how the volatility of the cryptocurrency and NFT markets prevents many large investors from investing in the space, and Animoca Capital looks to invest strategically to help create an active market where these investors can gain exposure to the asset class.
“For many traditional investors, investing in growth [stage] at a late stage is safer. It is very different from investing in a seed startup, which has much higher risk,” Siu said.
The fund is also likely to focus on digital property rights, which is an important issue for Siu. He has previously discussed his belief that Web3 features like NFT have the power to “free” content creators from the grip of the Web2 giants and give them more control over their creations.
The Animoca Brands boss also suggested that an additional fund was needed that could be used as an investment vehicle and seek financial returns, as that is not an Animoca Capital approach. Such a fund would prioritize “everything related to digital property rights” and will not seek geographic restrictions for investment decisions, according to Siu.
The fundraising campaign for Animoca Capital has yet to take place, but its goal is to raise between $1 billion and $2 billion. In early 2022, Animoca Brands raised $358 million to help grow the open metaverse and support product development and licensing.
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