Animoca Brands cuts web3 and gaming fundraising goal in half

Gaming giant Animoca Brands expects to lower its target of $1 billion this quarter. The funds will be used for Web3 and Metaverse investments.

The target is a departure from the $2 billion commitment made in November.

Web3 Funding Adjusted To A Fragile Market

Animoca’s CEO had previously exposure to Nikkei that the company intends to set up a $2 billion fund, Notably, it was in association with former Morgan Stanley executive Homer Sun.

The ambition was to go global by supporting mid to late stage web3 startups.

The reduction was mostly due to the FTX slowdown and losses in the crypto market. In addition to the general market decline, about a dozen Animoca’s portfolio companies bore the brunt of the collapse, according to co-founder and chairman Yat Siu. This includes the starship game Star Atlas, whose treasure was primarily placed on the FTX.

Solana-based Star Atlas Game Studios previously revealed that the FTX crash had cost it half his cash runway.

Siu also said that Animoca Capital is in talks with potential investors and will use the funds to promote blockchain and metaverse startups. While the executive said the target for Animoca Capital is Q1, the market will dictate the direction.

He also agreed that a fragile market could ultimately lead to fundraising goals falling a bit short.

Gaming market tangled after FTX explosion

There are still issues to contend with beyond the general negative sentiment in the region. many people still find earn to playPlay-to-own, GameFi, and NFT niches too complex, The industry widely agrees that Web3 games are not very intuitive for potential gamers. According to a survey, only 52% of popular gamers are unfamiliar with any Web3 gaming terminology.

However, in relation to 2022 funding figures, Animoca Brands remains one of the top Web3-centric projects.

Forum exposure Temasek, Boyu Capital, and GGVCapital were among the investors that will cumulatively contribute approximately $544 million in 2022. It said the funding fuels efforts to build an OpenMetaverse and provide Internet users with access to digital property rights.

In addition, according to nasdaqAnimoca Brands also executed the most Metaverse deals in 2022. These deals spanned support organizations, open metaverse platforms, and Web3 game producers.

disclaimer

BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.


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