Animoca Brands, a company focused on Web3 games, announced that it is now targeting a $1 billion raise for a fund to inject aid for already established blockchain projects. The number is significantly lower than the $2 billion the company announced in November as the upper limit for that same fund.
Animoca Brands announces lower numbers for Web3 and Metaverse Fund
Animoca Brands, one of the most popular Web3 game and blockchain companies, made a new announcement regarding its fundraising goals for the first quarter of 2023. Yat Siu, co-founder of the company, recently declared in a Twitter Spaces chat, he was looking to raise $1 billion from various parties for a fund tentatively called Animoca Capital, which would focus on supporting already established Web3 projects.
That number is significantly lower than the target Siu set in November when he first revealed his plans to launch the fund, saying Animoca Brands planned to raise up to $2 billion. At the time, Siu acknowledged the challenge of raising that amount of funds, as the demise of FTX recently rocked the cryptocurrency world.
Siu said the event affected a dozen projects in Animoca Brands’ portfolio, with the backlash affecting the broader cryptocurrency market.
However, even with these events hampering the state of the crypto market and Web3, Animoca Brands is optimistic about the outcome of this venture. On achieving the newly announced goal, Siu explained:
Q1 is the goal and then let’s see what happens. It’s fair to say it’s a tough market. But we have a lot of interest.
However, as in November, Siu did not disclose investors interested in backing this fund. The fund should focus on investing in late-stage Web3 gaming and metaverse projects, which are considered less risky than putting money into fledgling startups.
Animoca Brands still has no plans to raise funds for itself this year. Data from company releases indicates that it had more than $200 million in cash and about $940 million in cryptocurrencies considered liquid as part of its reserves in 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 funding round led by Temasek, a Singapore-owned venture capital firm, Boyu Capital and GGV Capital.
What do you think of the new objective announced by Animoca Brands for its Web3 fund? Tell us in the comments section below.
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