Animoca Brands Refutes Allegations of Metaverse Fund Target Cut and Valuation Drop – Crypto News Today

Animoca Brands, a venture capital firm and Web3 game developer, has refuted recent claims that it cut its metaverse fund target by $200 million, or 20%, amid crypto market volatility. and banking sector instability. The company also played down suggestions that its valuation dropped from $6 billion in July 2022 to around $2 billion in March 2023.

The claims were reported by Reuters on March 24, citing unnamed “people familiar with the matter”, who alleged that Animoca initially halved its $2 billion metaverse fund target in January and recently reduced it. 20% to $800 million. The fund was announced in November 2022 to allocate capital to mid-to-late-stage startups with a metaverse focus, and Animoca co-founder and chairman Yat Siu stressed at the time that the goal of the fund was between $1 billion and $2 billion, depending on the amount of capital raised.

While Animoca acknowledged that the bank meltdowns in the United States have impacted the venture capital available, the company pointed out that the final amount raised for the fund has yet to be determined. “When the raise is complete, we will notify the market of the appropriate details, including the final size of this fund,” the company said.

Regarding the company’s valuation, Animoca claimed that the figures reported by Reuters and “two other” unnamed sources were inaccurate. The company argues that its total market capitalization is not fully represented by data from PrimaryMarkets, where its shares have traded since its delisting from the Australian Stock Exchange in March 2020.

Animoca ended its agreement with PrimaryMarkets in the second half of 2020, but the platform continued to trade its shares. The company said “the trading volume is far too low to provide the price accuracy you would find in a live primary market.”

While the claims made in the Reuters report remain unverified, they highlight the impact of recent events in the crypto market and fundraising efforts. Animoca’s position suggests that the company is still confident in its ability to raise capital for its metaverse fund and that its valuation is higher than reported. However, it remains to be seen how successful the fundraising efforts will be and whether Animoca will achieve its original goal for the fund.