Animoca Brands to launch $2 billion fund for metaverse investments

The blockchain-game operator Animoca Brands plans to launch a fund of up to $2 billion to invest in metaverse companies. In an interview with Nikkei Asia, cofounder and executive chairman Yat Siu said.

He added that a vehicle named Animoca Capital is still being formed and has not begun fundraising. The fund will focus on businesses that are “open to NFT and metaverses.” The first investments are expected in 2023.

According to Siu, there are no geographic restrictions on supporting startups.

Animoca Brands has invested in roughly 380 Web3 Web3-sector companies, including OpenSea and Dapper Labs. However Siu clarified that the aim of these investments was ecosystem development and the creation of an active market, not profit.

As the industry matured, the company decided to focus on investment efficiency, the cofounder said.

“The fund will focus on capital efficiency and profits. So, it will all be different,” he added.

Siu also noted that previously a number of Animoca Brands’ investors viewed their funding as acquiring stakes in portfolio companies. Now there is demand from them for direct investments in late-stage Web3 startups. The launched fund will give them that option, Siu said.

According to him, Animoca Capital is meant to be one of the tools to achieve the company’s “long-term goal” of embedding digital property rights.

“I hope this leads to a scenario in which digital property is recognised by the legal system on equal terms with physical property,” emphasised Siu.

Despite the bear market, in July Animoca Brands raised $75 million, and in August — another $100 million. The head of the company admitted that securing funding this time proved more challenging than in previous rounds.

“On the other hand, it wasn’t as competitive as before. […] In a bear market, capital often concentrates among market-leading players,” said Siu.

Regarding the latest developments in the crypto industry, he expressed confidence in a quick rebound. Siu confirmed Animoca Brands’ participation in a Binance-led initiative to support the sector — the firm will contribute $10 million to the fund.

Since 2015 the company has been listed on the Australian Stock Exchange. In 2020 the exchange delisted Animoca Brands for violations of the rules. On a relisting, Siu said it will certainly happen, but not soon and not on this market.

According to Animoca Brands CEO Robby Yung, the creation of metaverses will take up to 10 years.

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