Animoca Brands cuts metaverse fund target to $800M: Report
Animoca Brands cuts metaverse fund target to $800M: Report
Animoca Brands has cut its target for its metaverse fund to $800 million, according to a report. The company announced in November 2022 that it was working on a new Animoca Capital fund with a target of $2 billion but then halved that target in January 2023. The fund is reportedly focused on investments related to games and blockchain-based digital assets.
Animoca Brands is a Hong Kong-based gaming and blockchain firm that has invested in several projects related to the metaverse, an emerging concept made up of virtual worlds and other digital experiences. The company has also invested in companies developing blockchain technology solutions such as VeChain and Qtum.
Last year, Animoca Brands’s portfolio companies received investment from corporations such as TrueAchievement and Itsuki. This trend is expected to continue in the coming year as firms like Animoca Brands are increasingly seen as the go-to source for investments related to the metaverse.
The new fund from Animoca Brands is reportedly targeting a much smaller amount – $800 million – than initially planned. This could indicate that the company has decided to focus on smaller investments rather than large ones. It could also suggest that the economic impact of the pandemic has caused the company to rethink its approach.
The Animoca Capital fund is the latest venture from Animoca Brands into the metaverse sector. With its announcement, the company is likely attempting to strengthen its foothold in the sector and capture more market share.
The move comes as more companies are turning to virtual worlds as a way to keep customers engaged and entertained. The metaverse sector is expected to continue growing over the next few years, especially with the emergence of new technologies such as augmented and virtual reality.
It will be interesting to see how the $800 million fund from Animoca Brands is used and what types of investment decisions are made. It could provide valuable insights into the potential of the metaverse sector and how businesses can capture opportunities related to virtual worlds.