a16z Crypto, a Web3-focused fund managed by US-based venture capital firm Andreessen Horowitz, has joined a consortium of investors that backed the $13.8-million raise of Philippine startup Yield Guild Games (YGG).
The raise, which was done through a token sale from the YGG treasury, was also participated by DWF Labs, Galaxy Interactive, Sangha Capital, and Sanctor Capital, according to the announcement.
YGG said it will use the funding to continue the decentralised development of its network and the global ecosystem it represents. YGG is the largest decentralised network of gaming guilds focused on blockchain games and Web3 education.
It also supports the burgeoning competitive Web3 esports scene and has its own team of esports players called YGG Elite.
YGG lends gamers the initial capital to buy a character to get started in a blockchain game. These games allow players to earn in-game tokens that can be converted to cryptocurrency and then sold for real money.
In December 2021, YGG Southeast Asia, the first regionally-focused sub-unit of YGG, raised a total of $15 million across two rounds of funding.
The token sale is not a first for a16z in YGG. In 2021, a16z participated in the gaming platform’s $4.6-million round. The round was also participated by Kingsway Capital, Infinity Ventures Crypto (IVC), and Atelier Ventures.
DWF Labs, which also invested in the funding round, is a digital asset multi-stage Web3 investment firm that provides support from from token listing, liquidity support, and over-the-counter (OTC) trading solutions.
“We are confident that through this token purchase, YGG will continue to innovate and grow the blockchain gaming space as we provide support through this long-term partnership,” said Andrei Grachev, managing partner at DWF Labs.