The Sandbox, a subsidiary of Hong Kong-based gaming software firm and Web3 investment powerhouse, has secured $20 million of convertible promissory notes at a $1 billion valuation.
London-based investment firm Kingsway Capital and Animoca Brands co-led the investment, according to a release.
LG Technology Ventures, the venture capital investment arm of South Korean multinational conglomerate LG Group, and True Global Ventures participated in the round. Noteholders will be able to convert into equity of Bacasable Global Limited, the firm that operates The Sandbox, at the same terms as existing preference shares.
The proceeds will be used to further the growth of its ecosystem including bringing new social interactions and abilities for avatars and a new multiplayer rules system. The Hong Kong-headquartered firm also plans to develop a mobile version of its existing metaverse platform that is due to launch in 2025, per the release.
The investments came over two years after the firm was looking to raise $400 million at a valuation of over $4 billion, Bloomberg reported in April 2022, citing people familiar with the matter.
Previously, the firm raised $93 million in a round led by SoftBank’s Vision Fund 2 in November 2021. Some of its existing shareholders include Samsung Next, the corporate venture arm of South Korean conglomerate Samsung Group; New York-based VC fund and incubator Liberty City Ventures; SCB 10X, the investment and venture-building arm of Thai lender Siam Commercial Bank (SCB); Hong Kong-listed alternative investment firm Sun Hung Kai & Co. Ltd., among others.
Animoca Brands acquired San Francisco, US-headquartered Pixowl, the developer of The Sandbox game for mobile and blockchain, in August 2018 for over $4.8 million.
As The Sandbox announced the development of a blockchain version of its namesake game the same year (2018), the firm has now enabled users to build, own, and monetize their gaming experience, alongside brands, intellectual property (IP), and celebrities across gaming, entertainment, music and art.