One of the biggest companies in the Web3 gaming industry, Animoca Brands, is getting ready to introduce a $2 billion fund for investing in companies operating in the metaverse.

Yat Siu, the company’s CEO, announced the new Animoca Capital fund in an interview with NikkeiAsia. In 2023, the fund is anticipated to make its first investment.

According to Siu, the fund, Animoca Capital, will try to raise between $1 billion and $2 billion. However, instead of focusing on maximizing financial gains, Animoca Capital will invest strategically to build a Web3 ecosystem and an active market. Accordingly, the fund would provide all Web3 startups with a suitable entry point. 

He declared:

“For a lot of traditional investors, investing in growth [stage] to a late stage is safer. It’s very different from investing in a seed startup, which has much higher risk.”

Siu continued by saying that the purpose of a fund is to provide the opportunity for “exposure to mid-to-late-stage companies,” which is what the newly developing Web3 companies seek. 

The fund will prioritize “everything on digital property rights” concerning the projects and won’t look for geographic limits when making investment choices.

Previous investments made by Animoca Brands

Siu of Animoca has undoubtedly shown faith in Web3. As a result, the corporation has also made investments in the world of cryptocurrencies. The business is primarily known for backing the virtual reality game Sandbox.

The company made over 60 investments in the first half of 2022, bringing its total to more than 340, according to The Block Research. Animoca Brands is no stranger to investing in the nonfungible token (NFT) and Web3 gaming space.

Animoca Brands investment reach

Animoca raised $358 million at the start of the year to expand the open metaverse and finance product development and licenses.

They partnered with Binance Smart Chain to create a $200 million program to fund GameFi projects in December 2021. To launch a line of blockchain-based games, Animoca also purchased the French video game studio Eden Games in April 2022.

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Jonatan is a freelancer, content writer, and researcher surrounding the topics of crypto, DeFi, and Web3. He is also the author of a crypto & Web3 book “What Exactly is Crypto”.