Animoca Brands Lands $110M in New Funding Round

Leading blockchain gaming platform Animoca Brands has announced the conclusion of a strategic funding round for $110 million which is equivalent to A$159 million. 

The majority of the funds were from a collection of convertible note investments issued to a small number of institutional investors at a conversion price of A$4.50. The convertible note round enjoyed collaborations from both new and returning investors who are offering their contributions in different forms

Returning investors who participated in the round include Mirae Asset Management and True Global Ventures (TGV) which contributed $17.2 million in the convertible notes. New investors in the strategic funding round are Singapore state investor Temasek, private equity firm Boyu Capital, and venture capital firm GGV Capital. 

Correspondingly, the new investors will offer advice to Animoca Brands as it goes through organizational capability growth. According to Animoca, “this will include engaging and advising the Company on a range of business issues as well as providing input on its business and capital plans.”

Animoca Brands to Fund Strategic Acquisitions

The company plans to utilize the secured capital in funding strategic acquisitions, investments, and product development. In like manner, Animoca Brands intends to acquire licenses and approvals for popular intellectual properties, then advance the open metaverse, through its efforts to promote digital property rights for online users. 

Based on the details of the raise, all convertible note investments have a stipulated maturity period of three years from the date it was issued. Also, these notes could be converted before the expiration of the maturity period. In the event of default, the notes are put through government ordinances which are necessary for such investments. 

Equally important, is the fact that Animoca Brands had just completed a funding round with Temasek. The funding news was first hinted by Bloomberg a week ago as the media platform noted the investment giant will use convertible bonds to finance the transaction. 

Before this, it had increased its pre-money valuation to $5.9 billion with a funding round that had no lead investor but generated $75 million. At the time, it had support from the likes of Liberty City Ventures, Kingsway Capital, Alpha Wave Ventures, 10T, SG Spring Limited Partnership Fund, Generation Highway Ltd, and Cosmic Summit Investments Limited.