Animoca Brands Refutes Claims of Metaverse Fund Cut and Valuation Drop
Animoca Brands, a venture capital firm and Web3 game developer has denied allegations that it reduced its metaverse fund target by $200 million, or 20%, to $800 million due to cryptocurrency market volatility and instability in the banking sector.
The company has also dismissed claims that its valuation has dropped from $6 billion in July 2022 to approximately $2 billion in March 2023.
Animoca announced a fund in November 2022 to support mid-to-late-stage start-ups with a metaverse focus. Cofounder Yat Siu stated that the target range was between $1 billion and $2 billion, depending on the amount of capital raised.
Animoca has clarified that $1 billion has always been within the declared range and that the amount raised for the fund is yet to be determined. While the firm acknowledges the impact of banking collapses in the United States, fundraising for the Animoca Capital fund is still underway.
Siu has noted that the anonymous sources behind the leaked information make verifying their agenda or accuracy difficult.
Animoca argues that its total valuation is not fully represented by its market cap of approximately $2 billion calculated from trading on unlisted exchanges, such as PrimaryMarkets, since the trading volume on such platforms is too low to provide price accuracy compared to an actual primary market.