Animoca Brands Announces $110 Million Funding Deal With Temasek
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The capital raise takes the form of a convertible note issuance that cannot be converted into stock. When a business cannot raise equity financing or does not want to dilute its shares, it may adopt this fundraising strategy.
As Animoca pointed out, the notes are due for maturation three years from the date of issuance, and the holder of the notes may elect to convert them at any time before that maturity date at their discretion.
Yat Siu, co-founder and executive chairman of Animoca, stated,
"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."
Animoca To Secure Licenses
In addition to funding strategic acquisitions, investments, and product development, Animoca plans to secure licenses for popular intellectual properties, promote digital property rights for online users, and advance the "open metaverse."
The Hong Kong-based game software company had revealed that it had raised $359 million in an earlier round of funding in January. It added to that with a $75 million fundraising effort in July, increasing its valuation to almost $6 billion.
Liberty City Ventures, Kingsway Capital, Alpha Wave Ventures, 10T, SG Spring Limited Partnership Fund, Generation Highway Ltd., and Cosmic Summit Investments Limited were the company investors in the July round. In January, Liberty City Ventures took the lead in the funding.
As a result of its investments in more than 150 NFT and metaverse-related businesses, including OpenSea, Dapper Labs, Yield Guild Games, and Axie Infinity, Animoca Brands has emerged as a significant player in the crypto gaming and NFT industry. With the most recent $100 million in support, Animoca Brands has received more than $600 million in total funding.