True Global Ventures 4 Plus (TGV 4 Plus) Fund and TGV 4 Plus Follow On Fund (TGV 4 Plus FoF) announced a $17.2m convertible note investment into Animoca Brands out of a total raise of $110m. Other investors included Boyu Capital, Singapore’s Sovereign Wealth Fund Temasek and GGV Capital. The investment comes after Animoca Brands’ second closing at a valuation of $5.9 billion (based on Australian dollar exchange rates), on July 12, 2022.
The investment is to further Animoca Brands’ mission to deliver digital property rights to gamers and Internet users, thereby creating a new asset class, play-to-earn economies, and a more equitable digital framework contributing to the building of the open metaverse.
What were the executives’ thoughts on the funding?
Yat Siu, the co-founder and executive chairman of Animoca Brands, said: “We are honoured that the TGV 4 Plus Follow On Fund has chosen Animoca Brands as its first investment and are deeply grateful for TGV’s continued support. Thanks to the shared network effect of the open metaverse, the funding of late stage companies like us also provides a boost to early stage growth, so we believe this is a positive development for the entire ecosystem.”
Commenting on the funding, TGV General Partner Kelly Choo said, “I’m happy to see the underlying business traction in the overall web3 ecosystem, led by many of Animoca Brands initiatives. I’m also thrilled by the new senior management appointments who will complement the existing strong management team that will take the firm to the next level.”
TGV General Partner Dušan Stojanović commented, “I’m impressed by the number and quality of strategic acquisitions and investments that Animoca Brands has made. It is one of the big winners of the market correction, and is likely to emerge stronger from this down market similarly to how companies like Amazon emerged from the Dotcom crash.”
How critical has TGV been the success of startups?
TGV has been an early backer of Animoca Brands since 2019 and has seen it achieve unicorn status in May 2021. Animoca Brands has derived its growth in value from the revenues of its blockchain projects, and the over 340 investments it has made in the open metaverse.
Besides Animoca Brands, the TGV 4 Plus base fund has also invested in other leading companies such as The Sandbox (a subsidiary of Animoca Brands), Forge, Chromaway, Coinhouse, GCEX, Chronicled, Enjinstarter, Iomob and Dedoco and others.
The news marks the first investment made by the new TGV 4 Plus FoF, which focuses on investing its capital into selected TGV 4 Plus base fund companies. TGV 4 Plus Follow On Fund will consider making more investments in other late stage web3 deals as the need arises.
The TGV 4 Plus FoF completed its first closing in June 2022 for $146 million. TGV 4 Plus FoF has 15 General Partners (GP) who lead the fund and its Investment Committee, investing more than $62 million of their money into the fund. This represents a total GP commitment of over 40% of the total fund size and over $4 million per General Partner on average.