Animoca Brands plans to launch US$2b metaverse fund

Hong Kong blockchain powerhouse Animoca Brands has plans to create a fund of up to US$2 billion to invest in metaverse businesses, according to the Japanese newspaper Nikkei Asia, citing the company’s co-founder Yat Siu.

Siu and fund managers will take the lead in establishing “Animoca Capital” with a fund size of US$1 billion to US$2 billion, Siu said during an interview with Nikkei Asia published on November 30. 

They intend to make their first investment in 2023, targeting startups in the metaverse and NFT fields that are in the growth phase or close to going public.

Animoca Brands has raised funds multiple times since the beginning of 2022, and has received support from Singaporean government investment firm Temasek, among others. According to previous reports and other sources, the company’s valuation is estimated to be over US$5 billion.

In August, Animoca Brands KK, a strategic subsidiary in Japan, raised US$22.5 million from Mitsubishi UFJ Bank. Siu said at the time Japan is one of the world’s leading content producers. “For Japan, entering the metaverse is not an option, but a necessity,” he said. In the Nikkei interview, he reiterated his views, saying Japan is one of the most promising markets.