Non-fungible token (NFT) and gaming investor Animoca Brands has reduced the target for its metaverse fund by 20% to $800 million, Reuters reported on Friday, citing two people familiar with the matter.
The firm was valued at almost $6 billion following a $75 million fundraise in July. However, its market cap in secondary markets has slipped below $2 billion, according to the report, citing two other people.
The metaverse is a term for a virtual world where the internet exists as an immersive space that can be used for work, play, socializing, experiences and events. While there is much excitement about its potential in some quarters, it remains a largely unproven concept.
As such, appetite for metaverse-related investment may have taken a hit in recent months as the broader digital asset industry's winter has shown little signs of thawing, from the collapse of cryptocurrency exchange FTX in November to those of crypto-friendly banks Silvergate and Signature this month.
In response, Animoca said the initial $2 billion figure offered in November was the upper end of a $1 billion-$2 billion range it was targeting.
"There's no doubt that the FTX and banking crises have had a serious impact on available venture capital, but fundraising for the Animoca Capital fund is in progress, the firm said." When the raise is concluded we will inform the market with the appropriate details, including the final size of this fund.
UPDATE (March 27, 09:40 UTC): Adds Animoca response in final two paragraphs.
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