Animoca Brands Corporation Ltd has completed a capital raise of US$358,888,888 (about A$500.3 million) at a pre-money valuation of US$5 billion for the pioneering Decentralised Finance (DeFi) and non-fungible token (NFT) company.
The valuation is a considerable increase on the previous capital raise undertaken in October 2021 - US$65 million at a pre-money valuation of US$2.2 billion.
The round was led by Liberty City Ventures, with other investors including 10T Holdings, C Ventures, Gemini Frontier Fund, Winklevoss Capital, Kingsway, L2 Capital, Pacific Century Group, ParaFi Capital, Provident, Smile Group, Senator Investment Group and others.
The new capital will fund the continued expansion of Animoca Brands’ metaverse interests, financing strategic acquisitions and investments, product development and licences for popular intellectual properties.
“Initial stages of new Internet revolution”
“We are pleased to see continued and growing support from influential and strategic investors for Animoca Brands’ mission to deliver true digital property rights and build the open metaverse,” Animoca Brands co-founder and executive chair Yat Sui said.
“We have set ourselves the ambitious goals of building an open Web3 and facilitating an open metaverse that expands financial inclusion.
“In 2021 we saw tremendous growth in this space and Animoca Brands has been one of the forefront leaders in the development of this industry.
“We believe we are still at the initial stages of a new Internet revolution, and there are tremendous opportunities ahead of us in 2022 and beyond.”
“Open, fairer and more inclusive future”
Animoca Brands has been a prominent leader in the metaverse industry, working to build an open metaverse by bringing digital property rights to online users through the use of blockchain and NFTs.
The company believes these technologies enable true digital ownership of users’ virtual assets and data and make various DeFi and Game Finance (GameFi) opportunities possible (including play-to-earn formats) while offering increased asset interoperability, and an open framework that can lead to greater equity for all participants.
Liberty City Ventures managing partner Murtaza Akbar stated: "The trailblazing Animoca Brands is demonstrating to the world the game-changing characteristics of Web3 and the open metaverse.
“Animoca Brands is championing a more decentralised, open, fairer and more inclusive future where everyone can truly own their digital goods and benefit from them accordingly.
“We are extremely proud to be working with Yat and his world-class team to build the future of asset ownership and management."
“True digital property rights”
The global video game market was estimated to generate US$180.3 billion in 2021, while the metaverse market size is expected to grow to around US$829 billion by 2028.
Animoca Brands has established itself as one of the world’s leading technology groups in blockchain and gaming by spearheading and innovating decentralised in-game rewards and monetisation in video games.
Smile Group CEO and founder Harish Bahl said: "Smile is proud to partner with a visionary like Yat Siu and his team. We share his vision of Web3, where true digital property rights will unleash creativity, economic value and entrepreneurship, globally."
During the course of 2021, Animoca Brands raised US$216.28 million to power its vision of digital property rights and the open metaverse, while its subsidiary The Sandbox completed a capital raise of US$93 million.
Read: Animoca Brands wins industry support from major companies with US$65 million capital raise
Kingsway Capital founder and CEO Manuel Stotz said: “The delivery of digital property rights might well be one of the most powerful ideas of the 21st century.
“What started 13 years ago with the launch of Bitcoin has proven to be the beginning of a new era in which digital ownership is embedded in the Internet, powered by decentralised blockchains.
“Gaming might well hold the key to mass adoption of blockchain technology, and Animoca Brands is perhaps the best-positioned company in this space globally.
“In terms of emerging and frontier markets, where adoption is orders of magnitude faster than in the developed world, Animoca Brands has already had a tremendous impact on the way people live, play, and earn.”
“Endless new opportunities”
C Ventures founder Adrian Cheng said: “The virtual world offers endless new opportunities to empower the next generation.
“It provides them with platforms to create and innovate and learn more about the digital technologies that are transforming our present and future.
“My investment in Animoca Brands is reflective of my commitment to making the metaverse as widely accessible as possible and championing its potential.
“I am very proud to support Yat and the Animoca Brands team on their important mission.”
Animoca Brands and its subsidiaries offer a broad portfolio of game products, both centralised and decentralised, branded and original, with coverage across most primary platforms including mobile devices, game consoles, PC, web, and blockchain.
Some of the company’s major blockchain game projects include The Sandbox and its associated utility token SAND, the upcoming Phantom Galaxies “AAA” blockchain third-person shooter, the REVV token ecosystem (REVV Racing, F1® Delta Time, MotoGP™ Ignition, and Formula E: High Voltage), the Arc8 platform and its GAMEE utility token, among others.
Read: Animoca Brands reveals Phantom Galaxies, an open world space opera RPG
Winklevoss Capital and Gemini founder Tyler Winklevoss said: “Animoca Brands has built and developed leading brands in the decentralised gaming and metaverse space. We have tremendous conviction in its vision and are excited to support its mission.”
Animoca Brands is an active investor in more than 150 NFT and metaverse-related companies, including OpenSea, Dapper Labs, Yield Guild Games, Star Atlas, Axie Infinity, Thetan Arena, and many others.
The company’s various subsidiaries include The Sandbox, Blowfish Studios, Quidd, GAMEE, nWay, Pixowl, Lympo, and Bondly.
In partnership with Brinc, Animoca Brands also operates Launchpad Luna, an accelerator to foster start-ups in the blockchain and NFT space.