Animoca Brands’ Fundraising Goal Slashed to $1 Billion in Q1 2023

Web3 gaming company, Animoca Brands, has announced a revised fundraising goal of $1 billion for a fund aimed at supporting established blockchain projects. This amount is significantly lower than the $2 billion the company originally announced in November as the upper limit for the fund.

Animoca Brands Revises Fundraising Goal to $1 Billion for Q1 2023

Animoca Brands, a leading Web3 gaming and blockchain company, has announced a revised fundraising goal of $1 billion for Q1 2023. In a recent Twitter Spaces chat, co-founder Yat Siu revealed the company’s plans to raise the funds from various sources for a fund known as Animoca Capital. The fund will be focused on supporting established Web3 projects.

The new fundraising goal of $1 billion is significantly lower than the original target set by co-founder Yat Siu in November when he announced plans to launch the fund and stated that Animoca Brands expected to raise up to $2 billion. At the time, Siu acknowledged the difficulty of raising such a large amount of funds, especially in light of the recent turmoil in the cryptocurrency market caused by the collapse of FTX.

Siu revealed that this event had a negative impact on a dozen of the projects in Animoca Brands’ portfolio, leading to a broader downturn in the cryptocurrency market. 

Despite the challenges facing the cryptocurrency and Web3 markets, Animoca Brands remains optimistic about the success of this fundraising effort. In a recent statement, co-founder Yat Siu commented on the revised goal: 

Q1 is the goal and then let’s see what happens. It is fair to say it’s a challenging market. But we have quite a bit of interest.

As was the case in November, Siu did not disclose any potential investors for the fund. The fund will focus on investing in late-stage Web3 gaming and metaverse projects, which are considered less risky than investing in early-stage startups.

Animoca Brands has no current plans for its own fundraising efforts in the near future. According to company reports, Animoca Brands had over $200 million in cash and approximately $940 million in liquid cryptocurrencies in its reserves as of November. In July, the company raised $75 million, resulting in a valuation of $5.9 billion.

In September, Animoca Brands secured an additional $110 million in funding through a round led by venture capital firms Temasek, Boyu Capital, and GGV Capital.

Johnson Philip

Johnson Philip is a passionate cryptocurrency enthusiast and writer for CoinSEM.com. He has been following the crypto industry for years, and has a deep understanding of the various technologies and trends driving the market. Johnson has written extensively on topics ranging from blockchain development to ICO analysis and is known for his ability to translate complex technical concepts into easy-to-understand language.