Animoca Brands Raises $75 Million to $5.9 Billion to Invest in Blockchain Games

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Animoca Brands said it completed the second phase of a $75.3 million financing round from earlier this year, which valued the company at $5.9 billion.

The blockchain gaming company will use the money to invest in more games and advance the “open metaverse” vision.

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The current increase is the second tranche of funding announced earlier in January. This cycle has been extended to allow for due diligence processes.

Investors in the current tranche included Liberty City Ventures, Kingsway Capital, Alpha Wave Ventures, 10T, SG Spring Limited Partnership Fund, Generation Highway Ltd, Cosmic Summit Investments Limited and others.

Yat Siu, co-founder and executive chairman of Animoca Brands, said in a statement: “Digital property rights represent a generational shift that defines society affecting everyone online and paving the way for the rise of the metaverse. We are deeply honored to be able to open up. strong investor support as we work to strengthen Animoca Brands’ leadership in the Web3 industry and in true digital ownership.

I asked if there was any strategy behind the timing of the funding. Siu said in an email response: “The devastating dotcom crash of 2000 did not destroy the booming internet. The horrific financial crisis of 2008 did not stop the explosive growth of the internet, smartphones or mobile games. The frigid crypto winter of 2018 has not extinguished the flame of crypto All these events seemed brutally terminal in their time, but if you could go back to 2000, 2008 and 2018 you would have no trouble choosing the winning team that – at the time – was inexorably doomed seemed to be.

He added: “Likewise, the current market conditions will not kill Web3, the open metaverse, NFTs or cryptocurrencies. There will be bumps in the road, cyclical variations and the occasional black swan, but the map of the future is readable by anyone with a broader, longer view.

He pointed out that at one point in 2018 and 2019 Bitcoin was around $3,000 and Eth (Ethereum’s currency) was below $100.

‘Maybe it’s winter. But if so, then 2018/19 was more like an ice age. We have invested in companies (Klang, Planetarium more recently) and also acquired a company in that time (Tiny Tap), I think our feelings are clear,” he said. “This is one of the best times to invest from an entry-level perspective (and indeed valuation) and we’re not alone in this.”

Siu said he was grateful to investors who support the market and believe in the long-term vision. He noted that financing, like all financing, is not about today, but about tomorrow.

The company also said: “There was no specific timing strategy. We have been working on this increase for a while, but the closing has taken a little longer (as stated in the announcement) due to the due diligence being completed.

Animoca Brands will use the new capital to continue funding strategic acquisitions, investments and product development, license popular intellectual properties and advance the open metaverse, including through its efforts to promote digital property rights for online users.

This will not be easy as a “cryptocurrency winter” has arrived as crypto prices have fallen, leaving both investors and crypto users feeling like they don’t have as much money as before. Add to that inflation and fears of a recession in the global economy, and many in the industry fear that blockchain gaming companies could run out of cash before launching their products.

In the first quarter, blockchain games accounted for a third of all game funding, according to Drake Star Partners. And blockchain gaming locations accounted for up to 90% of all locations given access to gaming VCs. But that could be slowing down now.

Animoca Brands is one of the true beliefs in the blockchain and non-fungible token (NFT) market, which uses blockchain to authenticate unique digital assets. Animoca Brands has a growing portfolio of more than 340 investments, including Colossal, Axie Infinity, OpenSea, Dapper Labs (NBA Top Shot), Yield Guild Games, Harmony, Alien Worlds, Star Atlas and more.

Yat Siu is executive chairman of Animoca Brands.

Emil Woods, Managing Partner of Liberty City Ventures, said in a statement: “Over the next decade, humanity will discover and embrace the groundbreaking power that blockchain-based digital asset ownership will bring to many businesses, countless aspects of everyday life. We are proud to support Animoca Brands, a highly talented team of visionaries and builders at the forefront of this movement, to embrace and deliver on the promise of Web3.

The company aims to provide true digital ownership of virtual assets and user data, enabling various DeFi and GameFi capabilities (including gambling and earning), asset interoperability, and an open framework that can lead to greater fairness for all participants in the open metaverse. .

Manuel Stolz, CEO of Kingsway Capital, said: “The genius of digital property rights has been brought out of the bottle and internet users engaged in this revolutionary technology will not return to the digital slavery common on the internet. 2.0. The long-term growth trajectory of NFTs and comparable proprietary technologies is extremely steep, especially in emerging markets.We are excited to grow our ongoing partnership with Animoca Brands, which earned its stripes by coming out of the previous crypto winter of 2018-2019 with a much bigger and stronger company .

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