The web3 game developer Animoca, has denied recent reports that it has scaled back its metaverse fund target and experienced a significant drop in its valuation. The venture capital firm denied claims that it had reduced its metaverse fund target by $200 million, or 20%, to $800 million amid volatility in the crypto market and instability in the banking sector. The firm also dismissed suggestions that its valuation had dropped from $6 billion as of July 2022 to roughly $2 billion in March 2023.
In regard to this, the firm co-founder and chairman Yat Siu mentioned that, “the claim that the Animoca Capital fund target was ‘cut’ from $2 billion to $1 billion is not correct, because $1 billion has always been within the range declared.”
Additionally, the firm also recognised the effect of recent crises in banking system in the united state,
“While there’s no doubt that the FTX and banking crises have had a serious impact on available venture capital, fundraising for the Animoca Capital fund is in progress,” the firm stated. “When the raise is concluded, we will inform the market with the appropriate details, including the final size of this fund.”
However, Animoca remains committed to its mission of developing web3 games and supporting startups focused on the metaverse despite the challenges encountered.