According to the company, the recent market crash has affected funding, but the total amount raised has yet to be finalized.
The funding amount is yet to be confirmed, says Animoca
Prominent Web3 investor and blockchain game developer Animoca Brands recently reportedly reduced its Metaverse fund target by $200 million, citing crypto market volatility and banking sector instability denied. The company also refuted claims that its valuation fell from $6 billion in July 2022 to about $2 billion in March 2023.
The latest rumors came to light after Reuters reported that the Hong Kong game company cut its funding target from $2 billion to $1 billion, before cutting it by another 20% to $800 million. According to reports, this has been confirmed by “two people familiar with the matter.”
For clarity, the fund in question was announced in November 2022. At the time, Animoka co-founder and executive chairman Yat Siu announced that the fund’s goal was between $1 billion and $2 billion.
In an official statement, Animoka said, “The claim that Animoka Capital’s fund target has been ‘cut’ from $2 billion to $1 billion is incorrect because $1 billion has always been within the declared range. That’s why,” he said.”
The company has acknowledged that bank failures in the United States have affected its funding, but the total amount raised has not yet been finalized.
“There is no doubt that the FTX and banking crises have had a severe impact on available venture capital, but the Animoka Capital Fund fundraising is underway. We will inform the market of the appropriate details: the size of this fund,” Animoka wrote.
Regarding its valuation, Animoka claimed that figures reported by Reuters and “two other” unnamed sources were inaccurate. It focused on unlisted stocks such as Sydney-based PrimaryMarkets. This is because the figures were calculated using data from exchanges where
“[…] The claim that Animoca Brands ‘currently trades shares on the Primary Markets’ is technically incorrect. We terminated his arrangement with PrimaryMarkets in late 2020, but PrimaryMarkets has elected to continue trading shares of Animoca Brands on its platform. ” he said, Animoca, adding that PrimaryMarkets’ thin volume doesn’t quite reflect its valuation.
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