Animoca Brands has reduced the target for its metaverse fund by 20%, down to $800 million, according to two sources familiar with the matter cited by Reuters on Friday.
Surviving the bear market
Initially, the fund had aimed to raise $2 billion, but that was later cut in half to $1 billion in January. Animoca Brands was valued at nearly $6 billion following a $75 million fundraise in July 2021, but its market cap in secondary markets has since fallen below $2 billion, according to the report.
The reduction of the target for the metaverse fund is likely an effort by Animoca Brands to scale back its ambitions and more realistically align its fundraising goals with market conditions. This move also reflects the broader investor sentiment toward the digital asset industry, which has seen significant volatility in recent months.
The decision to cut the target for the metaverse fund also highlights the challenges associated with investing in a relatively untested industry, where success is far from guaranteed.
Blockchain-based metaverse platforms are thriving
Despite the decision from Animoca Brands to scale down on its Metaverse fund, the industry has registered record-breaking growth during the first quarter of 2021.
According to a recent report, metaverse-based NFTs have witnessed a spike in trading volumes, hitting an all-time high of $311 million. Virtual real estate NFTs have also surged, registering an impressive 147,000 total trades.
Animoca Brands continues to lead the charge
Animoca Brands remains bullish on the potential of the metaverse and will continue to invest in related projects. The company has made several metaverse-related investments, including purchasing a stake in The Sandbox metaverse.
Additionally, Animoca Brands has a growing portfolio, which exceeds 380 investments, and an extensive list of partners, including Planet Hollywood, Cool Cats, Eden Games, and TinyTap.
Source: nft.news
This news is published and verified by the NFT News media team.
