Saudi Arabia’s NEOM Investment Fund has proposed to invest $50 million in Animoca Brands, a Hong Kong-based gaming software firm and Web3 investment powerhouse.
Half of the investment, or $25 million, will be raised via issuing convertible notes at a conversion cap price of A$4.5 per share, while the remaining $25 million will be raised via a share sale in the secondary market, according to an announcement on Monday.
As part of a strategic partnership, Animoca Brands will also work with NEOM to accelerate Web3 development in Riyadh and the NEOM region as part of the investment and partnership.
The news comes 10 months after Animoca halved the target of its new fund to invest in mid- to late-stage metaverse firms to $1 billion, co-founder and executive chairman Yat Siu told Bloomberg in an interview in January. The fund size was further pared by 20% to $800 million, Reuters reported in March, citing people familiar with the matter.
2023 has so far been a tough year for crypto venture capitalists seeking to raise new funds. The average new fund size stood at $238.4 million for the first nine months in 2023, while the median was $50 million during the said period — both the figures went down significantly from the same period last year, according to a report published by the research arm of crypto investment firm Galaxy Digital.
While the fundraising environment stays bleak for crypto VCs, the Q3 data saw signs of improvement as around $1.2 billion was allocated to 15 venture funds. The fund count was 50% more than the previous quarter, while the raised capital was 62.5% more than the same period last year, per the report.