Animoca Brands raises $110M from Temasek, GGV and Boyu Capital as it considers potential IPO

Animoca Brands, the Hong Kong-based blockchain gaming developer and prominent investor in crypto projects, has raised $110 million in funding by issuing convertible notes as the company lays the groundwork for a potential IPO.

The latest funding round is being led by Singaporean state investment firm Temasek, as well as US venture capital firm GGV Capital and Chinese private equity firm Boyu Capital, according to a company statement on Thursday. Other participants include existing investors Mirae Asset Management and True Global Ventures. Animoca Brands’ valuation remains at about $5.9 billion, it said.

“We are incredibly pleased to have completed a special strategic fundraising round featuring some of the most respected institutional investors in the world,” said Yat Siu, Co-Founder and Chairman of Animoca Brands. “Our new investors will contribute strategic advice and perspective as we build the world’s leading company promoting digital property rights in the Web3 industry.”

Temasek, GGV and Boyu Capital will engage and advise Animoca Brands on a range of business issues, especially organization, process and governance, enabling it to become “pre-IPO ready,” according to the blockchain gaming company. But Animoca Brands added that it has not set out neither the timetable nor the place of residence for the listing. It was delisted from the Australian Securities Exchange in March 2020 for violating the exchange’s listing rules.

The capital will be used to continue funding strategic acquisitions, investments, product development, secure intellectual property licensing and expansion into the open metaverse.

MORE FROM FORBESAnimoca Brands: Blockchain Gaming Giant Says Web3 Future Is Not Far Away

When Animoca Brands was founded in 2014, it mainly focused on developing games for smartphones and tablets. But from 2017, it started venturing into blockchain games that allow players to own and trade in-game assets in the form of NFTs. As of April of this year, Animoca Brands said its investment portfolio had grown to more than 340 crypto-related companies and projects.

Animoca Brands has managed to attract a slew of major investors willing to buy into its efforts to develop the open metaverse. Less than two months ago, Animoca Brands raised $75 million in a funding round that valued it at $5.9 billion despite the ongoing downturn in the crypto market. The company’s long list of investors includes billionaire George Soros’ Soros Fund Management, Tyler and Cameron Winklevoss’ Gemini Frontier Fund, Sequoia China, and many others.

“The reality is that companies like us and in the ecosystem we are building, we are still outnumbered,” Siu said in a virtual panel during GAME ON! 2022 conference on Thursday, pointing to tech giants like Facebook also venturing into Web3. “We are the Davids and they are the Goliath. And so we absolutely have to be aware of this, which means we have to keep investing… continue to take over companies and move them to Web3.”