2022 Metaverse Fundraising Overview: Key Developments in NFT, Gaming, Infrastructure, and AI

Metaverse Post presents its comprehensive Fundraising Overview for 2022.

2022's bear market was a tough period for the industry, marked by several prominent blockchain breaches and a few high-profile project failures. Nevertheless, web3 remained a focal point for venture capitalists, enabling entrepreneurs to secure substantial funding for their initiatives. In total, 348 companies focusing on NFT, metaverse, gaming, AI, VR, and AR collectively raised an impressive $7,164,997,888—an increase of $4.8 billion compared to the previous year.

Various sectors captured investor interest at different points throughout 2022. The NFT bubble of 2021 burst In the middle of 2022, while NFT projects maintained their appeal, the latter part of the year saw emerging opportunities in other sectors. Venture capitalists began to heavily invest in play-to-earn models, particularly favoring blockchain casinos, ecommerce collectibles, loot boxes, and football-themed games. metaverse and gaming projects After numerous security breaches, venture capitalists recognized the critical importance of web3 security, leading them to allocate more resources towards startup infrastructure.

By Q4, investors pivoted towards startups operating in augmented reality, virtual reality, and mixed-reality spaces. The rise of Artificial Intelligence, especially after the advent of ChatGPT, captivated venture capitalists' attention. Notable funding rounds included Inworld AI securing $50 million in Series A funding, SEED with $41 million, SingularityDAO attracting $25 million, and MarqVision raising $20 million in Series A. It's likely that interest in AI will persist in 2023, suggesting a bright future for funding in this domain.

Overall, metaverse initiatives gained substantial traction in 2022, accumulating a total funding of $1,828.9 million throughout the year. The concept of the metaverse surged in popularity after Mark Zuckerberg rebranded Facebook to Meta. Additionally, the term itself garnered the distinction of being the second most popular word in Oxford's lexicon. AI chatbot Gaming came in as the second-highest investment sector, securing $4,487.3 million in 2022. Meanwhile, infrastructure projects attracted $200.8 million, and web3 social platforms brought in $259.1 million. AR and VR ventures gathered $178.6 million, while AI initiative funding reached $136.5 million.

In 2022, Paradigm emerged as the most proactive investor in the web3 space. Based in San Francisco, this collaborative investment firm focuses on early to late-stage cryptocurrency ventures and boasts a portfolio featuring names like Coinbase, Optimism, MoonPay, Chainalysis, Uniswap, and Magic Eden. They raised $2.5 billion for blockchain projects this year, adding 31 new web3 startups to their portfolio. Investments included notable entities such as Uniswap, Fractional, Blur, Magic Eden, and Optimism. Word of the Year 2022 contest. 

Hot on their heels is Andreessen Horowitz, often abbreviated to a16z, which invested a total of $2.2 billion in web3 companies. Established in Silicon Valley back in 2009 by Marc Andreessen and Ben Horowitz, this venture capital firm specializes in funding crypto, fintech, bio and healthcare, consumer, and gaming companies across various stages.

Most active funds

In an interesting development, in October 2022, the firm launched its own program that offers a $500,000 investment opportunity to each participant, exchanging this funding for a 7% equity stake and typical investor rights.

Hivemind Capital Partners, a versatile crypto-focused firm, emerged as the third most active investor of 2022, contributing $1.5 billion to web3 startups. Despite being a relatively new player in the industry, having launched just a year prior, Hivemind already boasts noteworthy investments in projects like music-centric LimeWire and Napster.

Binance Labs, the venture arm of Binance, allocated $1 billion towards blockchain companies in 2022. Looking ahead, it’s anticipated that Binance Labs will invest smaller amounts across a broader spectrum of startups. Crypto Startup School In total, the four leading investment funds raised an astonishing $22,485,600,000 this year. They were followed closely by other notable investors including 10T Fund, Initialized Capital, Pantera Capital, Borderless Capital, and Craft Ventures.

Animoca Brands stands at the forefront of investment in metaverse-focused initiatives, with the Hong Kong-based company backing 13 projects during the year. investment platform Following closely behind is Shima Capital, who finalized six rounds of investments, while Digital Currency Group supported five metaverse ventures. Other noteworthy supporters, such as X21Digital, Spartan Group, Hashed, Genblock Capital, DeFiance Capital, DAOMaker, and Coinbase Ventures, each funded four metaverse startups.

In total, 2022 saw the metaverse category engage 340 individual investors, collectively contributing an impressive $776.58 million.

The past year witnessed the rise of numerous new investment firms, with the Israeli organization Sheva taking the lead. They invested in Limit Break and Dynamic, with these companies receiving a substantial $207.5 million in funding.

Most active metaverse investors

Ranking second is Portal, which provided funding for Satori, Boba Network, GalleonDAO, and Job Protocol, raising a total of $57 million.

Additionally, Mulana invested around $50 million in various startups such as MARA, Ready Games Network, Joyride, Decry Protocol, and peaq.

Covering the next spot is Arriba Studio, which participated in funding rounds for YGG Hapan, Oasys Games, and double jump.tokyo, securing $47.8 million in total.
House Capital also contributed to funding rounds in SuperTeam Games, Venly, and Bitmama, collectively raising $35 million.

Most active new funds

Interestingly, out of the 47 investment firms formed in 2022, none ventured into investing in metaverse startups.

In 2022, the startups that successfully attracted the most investments included the global entertainment leader Epic Games, who raised a staggering $2 billion from Sony and LEGO owner KIRKBI. The creators of Fortnite are utilizing this funding to further their vision of the metaverse and to support its ongoing expansion, with the company's valuation now estimated at $31.5 billion.

Yuga Labs ranks second in terms of investment amounts. In March 2022, the studio behind the Bored Ape Yacht Club NFT collection secured funds to develop the Otherside metaverse. Currently, they have released the initial experience dubbed 'First Trip' and have fans eagerly anticipating the upcoming 'Second Trip.'

The venture firm Animoca Brands raised $434.2 million in 2022, with a valuation sitting at around $5.9 billion. They plan to utilize these funds to enhance the open metaverse. Notably, Animoca is known for actively investing in web3 startups and has had its name attached to various metaverse and NFT projects, including Sky Mavis’s Axis Infinity and the NFT marketplace OpenSea.

Animoca Brands also backed Sydney-based Layer2 NFT startup Immutable, which has raised a remarkable $200 million from prominent investors including ParaFi Capital, Temasek, Mirae Asset, Declaration Partners, and Tencent Holdings. Immutable is noted for creating play-to-earn NFT games such as 'Guild of Guardians,' 'Illuvium Land,' and 'Gods Unchained,' and currently boasts a valuation of $2.5 billion.

Limit Break, co-founded by Gabriel Leydon and Halbert Nakagawa, successfully secured $200 million from investors such as Standard Crypto, Buckley Ventures, and Paradigm Ventures. They aim to revolutionize the gaming sector with a free-to-own model that they believe will replace both play-to-earn and free-to-play gaming.

The metaverse technology firm Improbable raised $150 million to develop a network of interconnected web3 metaverses, known as 'M².' This funding round saw contributions from several heavyweights including a16z, Digital Currency Group, Susquehanna International Group, CMT Digital, and others.

Meanwhile, Singaporean game studio Sky Mavis raised $150 million from various investors including Binance Labs, Animoca Brands, and Andreessen Horowitz, using the funds primarily to reimburse users affected by the Ronin Validator Hack that occurred in March. attracted AngelList, which provides innovative tools for startups and investors, secured $100 million at a valuation of $4.1 billion, led by Tiger Global and joined by Accomplice and other supporters.

Additionally, they raised $100 million during a Series B funding round, which was led by Quadrille Capital and Headline, with backing from Northzone, Fabric Ventures, Singular, Bpifrance, and Eurazeo. The funds are earmarked for scaling operations through investments in data and technology solutions, hiring international talent, and forging new partnerships. raised $450 million Finally, the Chinese digital fashion platform Style3D secured $100 million in an extended Series B funding round led by Hillhouse and CDH Investments. This startup specializes in providing technical services for the development of virtual samples.

Yuga Labs, leveraging funds from a $450 million seed round backed by a16z, Animoca Brands, The Sandbox, and others, is focusing on advancing the Otherside project while expanding their team by recruiting engineers, creatives, and operational experts.

2022 Metaverse Fundraising Overview: Insights into NFT, Gaming, Infrastructure, and AI - Metaverse Post received Metaverse Post presents a comprehensive report on fundraising activities throughout 2022. The year was challenging for the industry, marked by a bear market that witnessed numerous significant breaches in blockchain security.

Limit Break received 2022 Metaverse Fundraising Overview: Insights into NFT, Gaming, Infrastructure, and AI

FTC's Attempt to Block Microsoft-Activision Merger Fails raised Date of Publication: December 30, 2022, at 8:44 PM - Updated: March 22, 2024, at 10:56 AM

To enhance your experience in your preferred language, we sometimes utilize an auto-translation tool. Please be aware that this translation may not always be spot-on, so it’s advisable to read the content with a critical eye. received During the first part of the year, investors were particularly drawn to NFTs. In the second and third quarters, their focus shifted toward gaming, the metaverse, and infrastructure, before converging on Artificial Intelligence as 2022 came to a close.

Metaverse Post highlights the fundraising report for 2022. raised The 2022 bear market proved arduous for the industry, as it experienced major blockchain network breaches and significant project failures. Nonetheless, the allure of web3 remained strong among venture capitalists, enabling entrepreneurs to secure considerable funding for their startups. In total, 348 companies specializing in sectors like NFT, metaverse, gaming, AI, VR, and AR managed to raise an impressive $7.16 billion—marking an increase of $4.8 billion from the previous year.

Gaming-focused tech developer Homa received Throughout 2022, different investment categories captured the attention of investors at various times.

By mid-2022, while interest in NFTs persisted, the latter part of the year saw considerable investments directed towards play-to-earn models, particularly in blockchain gaming, online casinos, collectibles, loot boxes, and soccer-related games. raised In light of recent high-profile exploits, venture capitalists recognized the critical need for enhanced security measures within web3, leading them to direct more funding toward infrastructure startups.

Largest web3 Seed rounds of 2022

In 2022, BAYC creators Yuga Labs raised As the year progressed into the fourth quarter, investors began to explore startups rooted in augmented reality (AR), virtual reality (VR), and mixed realities. The surge of interest in Artificial Intelligence, spurred by advances like ChatGPT, caught the attention of many VC firms. Notable fundraising rounds included Inworld AI securing $50 million in a Series A round, SEED with $41 million, SingularityDAO at $25 million, and MarqVision raising $20 million. It seems unlikely that VCs will divert their interest from Artificial Intelligence in 2023, suggesting a continued influx of funding for AI startups.

In general, 2022 saw a burgeoning interest in metaverse projects, which collectively raised a substantial $1.83 billion. This trend became particularly pronounced following Mark Zuckerberg's rebranding of Facebook to Meta, which popularized the concept. In fact, the term 'metaverse' achieved second place in Oxford's Word of the Year ranking.

Gaming emerged as the second most popular sector, garnering $4.49 billion in investments during 2022. Infrastructure projects attracted $200.8 million, while web3-based social platforms drew in $259.1 million in funding. Additionally, AR and VR startups raised $178.6 million, and Artificial Intelligence initiatives accumulated $136.5 million. raised Last year, Paradigm distinguished itself as the most active investor in the web3 domain. This San Francisco-headquartered investment firm focuses on crypto companies at various stages of their development and boasts an impressive portfolio including Coinbase, Optimism, MoonPay, Chainalysis, Uniswap, and Magic Eden. Throughout the year, it managed to raise $2.5 billion for blockchain initiatives and added 31 startups to its portfolio, including investments in Uniswap, Fractional, Blur, Magic Eden, and Optimism.
Following closely is Andreessen Horowitz, often abbreviated to a16z, which invested a total of $2.2 billion into web3 firms. Founded in Silicon Valley in 2009 by Marc Andreessen and Ben Horowitz, this venture capital firm specializes in various sectors, including early-stage to late-stage crypto, fintech, healthcare, consumer goods, and gaming. raised In October 2022, Andreessen Horowitz launched an initiative that provides a $500,000 investment to each participant, in exchange for a 7% equity stake and standard rights.

Fails

Hivemind Capital Partners, classified as a multi-stage crypto-native investment firm, emerged as the third most proactive investor last year. Despite being relatively new, having launched just a year earlier, Hivemind allocated $1.5 billion to web3 startups and secured notable names like LimeWire and Napster within its portfolio.

Binance Labs, serving as the venture arm of Binance, allocated $1 billion to blockchain projects in 2022. Looking forward, it’s expected that Binance Labs will likely opt for smaller investments spread across a broader array of startups. hacked Overall, the four primary funds managed to secure a staggering $22.49 billion in total funding during the year. They were followed by other noteworthy players, including 10T Fund, Initialized Capital, Pantera Capital, Borderless Capital, and Craft Ventures.

Animoca Brands emerged as a frontrunner among investors focusing on metaverse startups, having backed 13 projects throughout the year. $270 million loss Shima Capital came next, completing six rounds of investment, while DigitalCurrencyGroup was involved with five metaverse-related firms. Numerous others, such as X21Digital, SpartanGroup, Hashed, GenblockCapital, DeFianceCapital, DAOMaker, and CoinbaseVentures, participated in four projects each.

Several initiatives like NGCVentures, Metapurse, MechanismCapital, MagnusCapital, Liberty, LDCapital, Kyros, KingswayCapital, InfinityVenturesCrypto, GBV, BitscaleCapital, and Alameda have invested in three metaverse projects. exposure In total, 2022 saw the metaverse sector engaging with an impressive 340 unique investors, amassing investments totaling $776.58 million.

The year also marked the emergence of various new investment entities, among which the Israeli firm Sheva was particularly active, investing in Limit Break and Dynamic with a total funding of $207.5 million. issued a warrant In second place, Portal invested in companies like Satori, Boba Network, GalleonDAO, and Job Protocol, collectively raising $57 million.

Mulana contributed roughly $50 million across several startups, including MARA, Ready Games Network, Joyride, Decry Protocol, and peaq. this September Next was Arriba Studio, which played a role in funding rounds involving YGG Hapan, Oasys Games, and double jump.tokyo, amounting to $47.8 million.

House Capital additionally contributed to funding rounds for SuperTeam Games, Venly, and Bitmama, resulting in a $35 million total.

It’s noteworthy that among the 47 investment funds launched in 2022, none had made investments specifically in metaverse startups.

The most funded startups of 2022