Australian NFT scaling platform Immutable unveiled an inaugural $500 million developer and venture investment fund. The funding will be distributed to companies developing the Web3 ecosystem and non-fungible token (NFT) projects.
The half trillion dollar fund
In a recent interview for TechCrunch, Robbie Ferguson, co-founder and president of Immutable, stated that the company’s main goal is to integrate innovations in the Web3 gaming industry. As such, the firm will allocate the $500 million fund to developers building blockchain-based games and NFT startups.
“We see gaming as one of the biggest opportunities that has ever existed in Web3. The total addressable market is going to be huge and much bigger than the game is today: a $100 billion industry just for in-game items,” Ferguson stated.
Furthermore, the executive believes the sector could be worth $1 trillion in the future, assuming the film and music industry shows interest and joins its ecosystem.
The fund in question was amassed by Immutable’s venture partners and backed by cash on the company’s balance sheet:
“Obviously there’s all of our venture partners who are using their balance sheets and venture capital allocations to participate in these deals, there’s cash backing in [Immutable’s] balance, and then there are the foundation grants, which are designed specifically for this purpose to incentivize and build the Immutable ecosystem.”
Leading investors such as Animoca Brands, GameStop, BITKRAFT, Arrington Capital and Double Peak also collaborated on the financing.
Ferguson believes that in the next few years, mid-sized game studios will catch up and become the fastest growing companies in the market. As a result, additional blockchain-based games will join the Web3 universe:
“The main thing is that it takes time to integrate Web3 and it takes time to build a good game. There will be a huge influx of Web3 games in eight to 12 months, and there will be hundreds of Triple-A games in the next few years.”
Robbie Ferguson, Source: YPO
The former background
In March this year, Immutable closed a $200 million funding round led by Singaporean investment giant Temasek. Other big-name investors were also involved, including Arrington Capital, Princeville Capital and ParaFi Capital.
Immutable said it will use the funds to expand its team and bolster its game studio, which includes popular blockchain games like Guild of Guardians and Gods Unchained. The initiative boosted the company’s valuation to $2.5 billion.
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This post Immutable raises $500 million to support NFT projects and Web 3 games
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