Digital entertainment and blockchain technology developer Animoca Brands and payments services provider Circle have backed Taiwan-based venture capital firm Infinity Ventures Crypto (IVC)’s maiden fund, which closed yesterday with $70m in commitments.
Venture capital firm Digital Currency Group also supplied capital for the vehicle, which is focused on investments in gaming finance (GameFi), decentralised finance (DeFi) and Web3 technology, an iteration of the internet centred on the blockchain.
IVC has already invested in 78 portfolio companies since it was founded in August 2021, including decentralised autonomous organisations (DAOs) and sub-DAOs Bayz, Acadarena and Breeder; gaming guild Yield Guild Games and its sub-DAO, IndiGG; and non-fungible token (NFT)-based game developers MetalCore and Heroes of Mavia.
The round was oversubscribed according to CoinDesk, which reported that IVC did not want to grow it too large due to the fact many early-stage Web3 companies are typically seeking sub-$1m rounds. IVC typically contributes about $250,000 per transaction.
The firm has reserved 55% of the fund’s capital for Asian deals while 35% has been earmarked for investments in the Americas. Some 30% of the capital has already been deployed and the rest is set to be invested relatively quickly, as IVC plans to launch a new fund every 18 months.
Brian Lu, partner at IVC, said: “As a bridge between the East and West, we take a boots-on-the-ground approach by assembling teams of local experts to stoke the growth of our portfolio companies. We are proud to be off to a fast start and are excited to share our expertise with more innovators.”
IVC’s is the latest in a string of funds being launched to invest in Web3, crypto and digital assets. South Korea-based conglomerate Naver’s 3D avatar and digital space design-focused subsidiary, Naver Z, launched a $100m metaverse fund last week to invest companies developing content on its Zepeto metaverse app.
Last month, digital currency exchange Crypto.com more than doubled the size of the capital for its corporate venturing unit Crypto.com Capital, from $200m to $500m, which will go to metaverse, blockchain gaming, NFTs and DeFi technology.
Fellow cryptocurrency exchange FTX Trading launched a $2bn fund the same week that will focus on many of the same areas – financial technology, gaming, healthcare and blockchain-related software – hiring Amy Wu to head up the unit, which will integrate the $100m gaming fund FTX formed with blockchain technology provider Solana in late 2021.
Animoca Brands had itself launched a $200m gaming investment scheme with cryptocurrency exchange Binance’s Smart Chain subsidiary in December 2021 to fund GameFi and play-to-earn game developers.
