Animoca Brands raises $113.5m to develop video gaming NFT market

Blockchain gaming company Animoca Brands has achieved unicorn status following a capital raising which yielded approximately $113.5 million based on a business valuation of $1.28 billion.

The unlisted digital entertainment group issued 93.4 million ordinary shares at $1.10 each to raise the funds, attracting a string of global investors including Kingsway Capital (UK), HashKey Fintech Investment Fund (Asia-Pacific), AppWorks Fund (China), Axia Infinity Ventures (US) and Metapurse (Singapore).

Each investor and key partner will be issued a non-fungible token (NFT) by Animoca as a way of commemorating the unicorn achievement.

Proceeds from the raising will be primarily used to deliver digital property rights to video gamers through the use of blockchain NFTs, enabling benefits such as play-to-earn capabilities and digital asset inter-operability.

Strong interest

Animoca co-founder and chairman Yat Siu welcomed the strong interest from the investment community.

“We are honoured to have secured investors that share our vision for NFTs redefining equity and property rights online,” he said.

“This strategic capital raising firmly establishes Animoca as one of the leading and most valuable companies in the NFT space, in Asia and globally.”

Mr Siu said funds would also be earmarked for new product development, strategic investments and acquisitions, and the purchase of additional licences for popular intellectual properties to “cement Animoca’s leadership” in the NFT and gaming space.

Disruptive technologies

Kingsway chief executive officer Manuel Stotz pointed to the importance of supporting Animoca’s efforts in promoting “the power of disruptive technologies”.

“The emergence of digital property rights, whether via Bitcoin or NFTs, is perhaps the greatest opportunity for financial inclusion for the bottom three billion frontier and emerging market consumers, as well as an opportunity for a more decentralised and equitable global internet,” he said.

“We are proud to support Yat and his talented team at Animoca Brands in making this vision a reality and are honoured to co-invest alongside such a world-class roster of global investors.”

Leading force

Following the success of its blockchain game titles including F1 Delta Time, The Sandbox, and MotoGPTM Ignition – as well as the launch of their associated NFTs – Hong Kong-based Animoca has emerged as a leading force in the field of blockchain games.

Last month, the company announced that NFT sale events for F1 Delta Time and The Sandbox raked in a record-breaking $12 million in a space of three days.

Led by the recent launch of the Gamee, Tower and LMT tokens, the company is pioneering the use of blockchain-based in-game rewards to monetise video games in a market estimated to be worth $233 billion in 2020.