Publicly-traded Blockchain Gaming Animoca Brands Bags $110M

Animoca Brands, a Hong Kong-based game software company and venture capital firm, has raised $110 million in convertible notes from institutional investors. The round was led by Singapore’s state investment firm Temasek, as well as U.S. venture capital firm GGV Capital and Chinese private equity firm Boyu Capital.

Animoca Brands has established itself as one of the world’s leading technology groups in blockchain and gaming. The company uses technologies such as blockchain and NFTs to deliver true digital ownership of users’ virtual assets and data, enabling various DeFi and GameFi opportunities (including play-and-earn), asset interoperability, and an open framework that can lead to greater equitability for all participants in the open metaverse.

The company’s portfolio includes the REVV token and SAND token, original games such as The Sandbox, Crazy Kings, and Crazy Defense Heroes, and other products utilizing popular intellectual properties including Disney, WWE, Snoop Dogg, and Walking Dead.

The new investors will advise Animoca Brands as it grows and builds its organizational skills. They will also have an input in the company’s business developments and capital plans. Animoca Brands intends to use the funded capital to continue supporting strategic acquisitions, investments, product development, secure licenses for intellectual properties, and expansion into the open metaverse.

The convertible notes have a maturity date of 3 years from the date of issuance. The notes may be converted at any given time prior to the maturity date at the election of the noteholder for the lower of $4.50 per share, the price per share offered for sale to the public in an IPO, the price per share of the Company based on the pre-money valuation of the Company in connection with a liquidation event (including a sale or merger), or the lowest price per share of the Company issued in any equity financing round after issuance of the Note and prior to conversion. The notes are subject to events of default and include governance covenants customary for this type of investment.

This funding round is a significant milestone for Animoca Brands and reflects the growing interest in the blockchain gaming and metaverse sectors. The company is well-positioned to capitalize on this growth and become a leading player in the space.

Quote from Animoca Brands’ executive chairman:

“We are incredibly pleased to complete a special strategic round of fundraising comprising several of the most respected institutional investors in the world, and we are honored by the continued support from existing investors. Animoca Brands has grown significantly as a company in the last year, and our new investors will contribute strategic advice and perspective as we build the world’s leading company furthering digital property rights in the Web3 industry.”