Introduction
There is a currently a big phenomena of Smart Money shifting their Focus from Traditional VC Investing to GameFi / Cryptocurrency Investing. This transition is silently happening even under the current Market conditions even as Global Economy has taken a hit on Equity / Stocks / Commodities Pricing.
As Investor find ways to increase their Investment Growth, the Traditional VC investment is no longer the “sexy” investment Area. Cryptocurrency is now the new Growth + Future sector, and many big names VC are starting to wake up to this new Industry.
Let’s Compare
According to Footprint Analytics the total number of GameFi projects reached 1,498 as of May, up 99% YoY. The amount of investment in the first half of the year reached $3.7 billion, surpassing the total of $780 million for 2021.
The graph below shows the slowdown of investment in Traditional VC Companies across the years as the Global Market enters a Liquidity Crisis, but yet Web3 Investments are on the Rise Year on Year!
Source → https://cryptoslate.com/2022-gamefi-project-financing-analysis/
Source → https://news.crunchbase.com/venture/global-venture-capital-funding-data-monthly-recap-may-2022/
Goliath Web2 Investor
Animoca Brands has closed a strategic funding round for US$110 million (approximately SG$139 million). The strategic consortium of new investors, formed by Temasek, Boyu Capital and GGV Capital, will provide advice to the Company as it continues to grow and build its organisational capabilities.
https://www.marketing-interactive.com/animoca-brands-raise-fund-round
Why is this so IMPORTANT? Temasek and GGV Capital is a Goliath Traditional VC Investor and having their first FORAY into investing into a Web3 space will OPEN up other investors to start taking investment into Web3 companies! It is very important to get a reputable and big Name Web2 Investor to open the Flood Gates of investing into Web3, as when they LEAD, the rest will FOLLOW.
Conclusion
As more money comes into the Web3 space, we are indeed very early in this space & opportunities open up to the early leaders. Just like the early Gold Mine or the early adopters of the Dotcom, and even comparing the the VC Startup Era, Cryptocurrency will be the next Narrative to Grow!