The co-founder of Animoca Brands, Yat Siu, has come out to refute claims that the firm cut its Metaverse fund target to $800 million and questioned the source of the claims.
Animoca Brands, a venture capital firm developing games in Web3, has come out to deny reports that it has cut its Metaverse fund target by 60%, from $2 billion to $800 million.
On top of that, the company denied claims that its valuation had dropped from $6 billion in July 2022 to just $2 billion as of March 2022.
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On March 24th, Reuters published a report based on anonymous sources, which claimed that Animoca had cut its Metaverese fund target. The report claimed that by the beginning of 2023, the target was $2 billion. In March, the company allegedly cut the fund target to $1 billion and then made an additional $200 million reduction.
Moreover, the report added that the company was delisted from the Australian Securities Exchange in 2020 for its aggressive expansion into crypto.
According to a public statement from Animoca, the claim that its fund target fell from $2 billion to $1 billion was false. The announcement noted that $1 billion had always been within the declared range.
Its statement acknowledged that the turmoil in the US banking system had impacted its operations. However, it stated that the final amount raised had yet to be determined. It noted that when the fundraising for the Metaverse fund was done, the firm will inform the public.
Animoca launched the fund in November 2022, dedicated to financing mid and late-stage startups in the Metaverse space. It is worth noting that fundraising is still ongoing, with a target of $2 billion.