venture
Galaxy Interactive raises another $325M fund aimed at Metaverse and next gen games
The venture capital firm will fund companies in the interactive sector that combine content, finance and tech.
Galaxy Interactive, a venture capital firm focused on next generation interactive technolo, has announced it has raised $325 million for its second fund from 70 different investors.
The fund is focused on virtual and augmented reality, artificial intelligence, and blockchain-based games.
In an Oct. 19 announcement, Galaxy Digital, the majority owner of Galaxy Interactive, stated that $150 million from the fund has already been allocated to new portfolio companies including Republic, 1047 Games, Elodie, ROAR, Art Blocks and Masterworks with other additional investments to be announced in coming months.
Established in 2018 by general partners Sam Englebardt and Richard Kim, the company now has more than $650 million in assets under management and has invested in more than 75 companies.
Englebardt describes the interactive sector as “the intersection of content, finance and tech” and believes it will drive considerable growth. The firm is notably focused on digital collectibles and the Metaverse, as Englebardt believes digital ownership via NFTs is a foundational pillar for a more immersive version of the internet.
https://t.co/ZcivfAllE2
— Sam Englebardt (@samenglebardt) October 19, 2021
What would you invest in if you believe, as @galaxyRTK and I so fundamentally do, that younger generations are moving en masse from the physical to the digital world?
May you live in interesting times… @galaxyRTK @novogratz
Mike Novogratz, Founder and CEO of Galaxy Digital, said the two general partners had seen the potential of the sector very early on:
"They [Englebardt and Kim] were the first people to pound my desk insisting that gaming and digital objects — which weren't even called ‘NFTs’ yet — would provide the biggest opportunity for blockchain technology to scale and that Galaxy Digital needed to specialize in this space.”
Related: Bitfury CEO confirms IPO considerations are part of expansion plans
Money is flowing into the sector with Bitkraft Ventures, one of the biggest investors in game and eSports startups launching a $75 million token fund earlier this month focused on blockchain gaming and digital entertainment.
Outside of interactive content, reports surfaced today that Multicoin Capital intends to raise $250 million by the end of 2021 for a third venture fund aimed at crypto startups.
In June, Andreessen Horowitz raised its third crypto fund, at a $2.2 billion valuation, making it the biggest-ever crypto venture fund.
Crypto and blockchain investments have already doubled 2020: KPMG report
Investors now have a better understanding not only about crypto assets but also the operational and procedural side of crypto, a new report states.
Crypto and blockchain investments continue to grow thanks to the ever-rising investor interest, according to a new report from Big Four accounting firm KPMG.
Titled “Pulse of Fintech H1 2021,” the study covers global investment activities in different financial technology verticals for the first half of the year. It details 2,456 investment deals worth $98 billion made between January and June. One of the top fintech trends for 2021 is the explosive growth in the crypto and blockchain investments, the report reads.
The first six months of 2021 saw 548 investments activities, including venture capitals, private equities, and mergers and acquisitions in the blockchain and cryptocurrency sectors. The total value of investments during the first half of the year is $8.7 billion, already doubling the total value of 580 investment deals made during 2020, worth $4.3 billion.
Companies that raised more than $100 million in funding rounds, including BlockFi, Paxos, Blockchain.com and Bitso, led the growth in investment volume.
“Cryptocurrency and blockchain are exploding globally,” said KPMG Global Fintech co-leader Anton Ruddenklau, adding:
“There’s so much happening in the space right now, between the eCNY project running in China, Facebook’s Diem, a number of ecosystem initiatives — not to mention all the different trading platforms raising money. Digital currencies and virtual assets are a big, big topic of conversation. I think for the rest of this year at least, crypto will be a very hot ticket for investors.”
The study points to rising investor awareness as a key driver of the growth in investment. Investors now have “a better understanding not only about crypto assets, but also the operational and procedural side of crypto — from custody and storage to storekeeping and the competitiveness and maturity of service providers.”
Related: What bear market? Investors throw record cash behind blockchain firms in 2021
KPMG predicted in the report that the cryptocurrency space would continue to mature while the distinction between cryptocurrencies and blockchain technologies would get stronger. Nonfungible tokens (NFTs), a key focus during the first half, would contribute to the evolution of crypto exchanges in the form of NFT-focused trading platforms.
The report expects a further focus on regulatory frameworks for the rest of the year. One specific case, India, would impact the whole ecosystem should it regulate cryptocurrencies as an asset class in the second half of 2021.