Blockchain game developer Mythical Games purchased UK-based metaverse streaming technology developer Polystream for an undisclosed sum on Tuesday, providing exits for chipmaker Intel and game publisher Wargaming Group.
Polystream has developed a software platform that makes it easier for gamers to access 3D virtual worlds in the metaverse and hop from one to the other without needing to download large data files.
Intel’s corporate venturing unit, Intel Capital, led Polystream’s $12m series A round in 2019 with backing from Wargaming and venture capital firm Lauder Partners, three years after it raised $1.5m in an Initial Capital and London Venture Partners-backed seed round.
The metaverse market, which was sized at $21.9bn in 2020, is expected to expand at a compound annual growth rate of 41.7% between 2021 and 2030, according to Market Research Future. As money continues to stream into the metaverse space, there may be opportunities for investors to divest to cash in as the smaller fish are caught.
Animoca Brands, the China-based gaming and blockchain technology developer that has become one of the most prolific and fastest-growing names in metaverse and non-fungible token (NFT) investment over the past year, raised $359m on the same day from investors including cryptocurrency exchange Gemini and internet group Smile Group at a $5.4bn pre-money valuation.
Several metaverse companies have received capital injections in the past few weeks alone. XR Casino, a developer of extended reality gambling technology, received an undisclosed amount from blockchain technology developer Bots two weeks ago as it prepares to launch its metaverse products.
Wilder World, the developer of a metaverse on the Ethereum blockchain network, secured $30m on Monday from investors including Animoca Brands, decentralised finance software provider Defi Technologies and cryptocurrency exchange Nexo as it develops in-metaverse products such as digital homes, wheels, shoes and land.
Polystream chief executive Bruce Grove said: “Our mission, from day one, was to disrupt everything we know about cloud native gaming.
“I cannot express how excited I am today that now, as part of Mythical Games, our platform will bridge the gap between blockchain-based technology and millions of consumers, bringing the benefits of NFT gaming to an even larger stage via accessible mass-market games.
“We have been following Mythical for a long time and they share our vision of a metaverse that not only hands ownership of [intellectual property] back to the creators and the users, but importantly, makes it fun.”
The deal comes two months after Mythical Games raised $150m in a series C round featuring cryptocurrency exchanges Binance and FTX to push its overall funding to $270m.
Photo courtesy of Polystream.
