Blockchain company Animoca Brands is launching a metaverse fund


  • Animoca Brands is well-known for its Sandbox metaverse game, which enables players to purchase digital land plots and customize them using non-fungible tokens (NFTs).
  • Co-founder claims that a $2 billion vehicle will target mid- to late-stage entrepreneurs.
  • Animoca Brands’s backers include the Singapore state fund Temasek, GGV Capital of the United States, and Mirae Asset Management of South Korea.

According to firm co-founder and executive chairman Yat Siu, Hong Kong-based blockchain gaming company Animoca Brands intends to establish a fund of up to $2 billion to invest in metaverse enterprises. In a Tokyo interview with Nikkei Asia, Siu stated that the business now intends to start a fund called Animoca Capital, with its first investment anticipated for the following year.

The chairman remarked, “We are thinking about a fund that is now forming. The fund aims to raise between $1 billion and $2 billion, though Siu claimed no money has been raised as of yet. The account will be managed by Siu and his fund manager partner.

In relation to “NFT metaverse” and “open metaverse” businesses, Siu stated that the “emphasis will be everything on digital property rights.” There won’t be any geographic constraints on investment targets, he continued. Siu clarified that rather than seeking profits, the main goal of these investments was to “build the ecosystem” of Web3 and establish a vibrant market.

Siu believes that a distinct investment vehicle is necessary in order to seek capital efficiency now that the business is more established. He stated,

The fund will be concentrated on equity optimization. “You optimize for a return like a fund. It is hence unique.

Siu predicted that the fund will increase the accessibility of Web3 startups to investors. According to him, some Animoca Brands investors who previously wanted exposure to the company’s portfolio companies now prefer more direct investments. They want direct access to mid to late-stage startups, which is what a fund provides. The envisioned fund, according to him, would be “a terrific entrance point” for Web3 companies. Many traditional investors believe that investing in growth companies until a late stage is safer. It differs significantly from making a riskier investment in a seed startup.

“Animoca Brands has attracted investors despite rising global interest rates and unrest in the cryptocurrency industry, including the collapse of FTX, one of its biggest brands. In January, $358 million in fundraising was disclosed.