Reuters: Animoca Brands has lowered fundraising for Web3 to $800 million

Reuters: Animoca Brands has lowered fundraising for Web3 to $800 million

Author: Robert Strickland (crypto expert)

Reuters: Animoca Brands has lowered fundraising for Web3 to $800 million
Reuters: venture capital firm Animoca Brands has lowered its fundraising for meta universes and Web3 to $800 million
For the second time this year, the venture capital firm is reevaluating the funding it intends to raise to invest in meta-universes

Venture capital firm Animoca Brands has lowered the amount it expects to raise for its Animoca Capital fund, which invests in meta-villages and Web3 projects, to $800 million, Reuters writes. Plans to raise $2 billion were reported in November 2022, but this is the second time the company has had to revise its plans.

Hong Kong-based Animoca Brands has invested in about 380 crypto projects, including today's best-known NFT platforms and blockchain games such as Axie Infinity, OpenSea, Dapper Labs, CryptoKitties, and The Sandbox.

Late last year, Animoca Brands announced the creation of the Animoca Capital fund and plans to raise $2 billion; in January, the company lowered the expected amount to $1 billion. That valuation has now been reduced by another 20 percent, to $800 billion, sources familiar with the matter told the publication.

Its stock now trades at a much lower valuation in secondary markets, and its market capitalization has fallen below $2 billion, the report said.

A spokesman for Animoca Brands declined to comment on the company's plans to raise money for the fund. He said the company knows its stock trades at a discount on PrimaryMarkets, but the platform "does not provide reliable validation of value."

Animoca's lowering of its fundraising goal and valuation reflects changing sentiment in the crypto industry: after a series of industry bankruptcies, the excitement around blockchain startups has waned.

Other news

crypto exchange Binance responded to accusations by U.S. regulators
How the zkSync project is making Ethereum faster and when it will release its own token
JPMorgan predicts high demand for Bitcoin until April 2024
LUNC token rose 22% after the court granted bail to Do Kwon
The Metropolitan will return $550,000 from the FTX crypto exchange
Bloomberg has learned about Changpeng Zhao's possible successor as head of Binance