Animoca Brands completes US$138.88m capital raise with second tranche of US$50m
01 July 2021 — HONG KONG — Animoca Brands, the company bringing digital property rights to gamers via NFTs, today announced that it has closed a second and final tranche of US$50 million in its US$138.88 million unicorn capital raise, conducted at a pre-money valuation of US$1 billion.
Investors in this second tranche included Blue Pool Capital, Coinbase Ventures, Gobi Partners, Korea Investment Partners, Liberty City Ventures, Samsung Venture Investment Corporation, Scopely, Token Bay Capital, zVentures (the corporate venture arm of Razer Inc.), and other prominent investors.
In the first tranche of the raise, Animoca Brands raised US$88,888,888 based on a valuation of US$1 billion (see announcement dated 13 May 2021); today’s announcement brings the total raised during the entire round to US$138,888,888.
Animoca Brands is focused on bringing digital property rights to video gamers and the Metaverse through the use of blockchain and non-fungible tokens (NFTs), which provide true digital ownership, play-to-earn capabilities, and digital asset interoperability.
The new capital will be used to fund strategic investments and acquisitions, product development, and licenses for popular intellectual properties.
Following the success of its blockchain game titles including F1® Delta Time, The Sandbox, and MotoGP™ Ignition, as well as associated tokens, including REVV and SAND, Animoca Brands has established itself as a leading force in the field of blockchain, NFTs, and games, and as a successful investor in the industry. The company’s investments include Dapper Labs, Opensea, Bitski, and Axie Infinity, among several others.
With the recent launch of the GAMEE, TOWER, and LMT tokens, Animoca Brands is one of the world’s leading blockchain based technology groups spearheading the use of blockchain-based in-game rewards and creating innovative ways to monetize video games – a market estimated to be worth US$179.7 billion in 2020 (source: IDC, 2020).
To commemorate the achievement of its unicorn valuation, Animoca Brands will issue NFTs to its investors and key partners.
Yat Siu, co-founder and chairman of Animoca Brands, commented: “We are honoured and excited to welcome strategic investors who offer powerful synergy and partnership opportunities. The strong demand we saw in this raise is a clear endorsement for Animoca Brands’ mission to deliver digital property rights to gamers and build the Metaverse.”
Tim O’Brien, chief revenue officer of Scopely, shared:
“At Scopely, we continue to be energized by, and aim to actively participate in, the future of play, supporting new models of innovation for players. Animoca Brands is on the forefront of blockchain gaming and a true thought leader in the space. Its impressive investment and crypto portfolio, along with its broad range of products, highlights a commitment to providing players a new asset class with sought-after play-to-earn economies. We are excited to partner with the team as they help shape the new horizon of games.”
Emil Woods, managing partner of Liberty City Ventures, commented: “We are thrilled to work with Animoca Brands, the foremost innovator in NFTs and gaming economies. Animoca Brands’ creations demonstrate the powerful possibilities that unique digital assets bring to the metaverse and the physical realm, heralding a decentralized future in which intellectual property will be able to travel seamlessly between both.”
A spokesperson for Samsung Venture Investment Corporation commented: “We are about to experience fundamental change in multiple aspects of our digital lives, including the ways in which we enjoy games and purchase and utilize virtual goods. Animoca Brands is the company making this decentralized future of gaming possible. We are thrilled to join this journey with Animoca Brands.”
Chibo Tang, managing partner at Gobi Partners, said: “By creating games and worlds around ownership of digital goods, Animoca Brands has introduced a true paradigm shift, placing power with users instead of developers. We’re seeing the emergence of a completely new ecosystem – a true metaverse.”
MinQ Kim, executive director of Korean Investment Partners, said: “I believe virtual economies will grow massively in the future, and I think Animoca Brands is one of the pioneers that is shaping the new horizon starting with NFT games.“
Cho Weihao, investment director at zVentures, the corporate venture arm of Razer Inc., commented: “Animoca Brands is one of the leading blockchain-focused gaming companies globally, driving the proliferation of NFTs and digital assets among youth and millennials. As the world’s leading lifestyle brand for gamers, most of whom are youth, millennials and Gen Z, Razer looks forward to supporting Animoca Brands and to exploring potential synergies.”
Details of capital raise
Animoca Brands has executed Subscription Agreements with various institutional and professional investors to raise a total of US$138,888,888 (approximately A$181.38 million), divided in two tranches of US$88,888,888 and US$50,000,000 at a subscription price of A$1.10 per share, for a total of 164.8 million new shares. The equity raising was based on a pre-money valuation of Animoca Brands of US$1 billion (approximately A$1.28 billion).
Animoca Brands’ corporate advisor Everest Ventures Group advised on and assisted with this capital raise.