Exclusive | Animoca Brands expands Web3 investment to the Middle East after John Lee’s visit seeking stronger business ties
- The blockchain gaming giant plans to put tens of millions of dollars into the region, starting with a partnership with Saudi Arabia’s Manga Productions
- Animoca co-founder Yat Siu said the visit from Hong Kong’s chief executive gives the company ‘more official channels we can leverage’
The Middle East’s emerging markets offer Animoca great opportunities given the region’s crypto-friendly regulations, strong gaming culture, and young population, Siu said.
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Siu said Lee’s trip “legitimises and validates the relationships between the parties”, resulting in “more official channels we can leverage”.
Animoca is also one of the biggest investors in Web3, a loosely defined term that refers to a next-generation World Wide Web built around decentralised technologies such as blockchain. It boasts a portfolio of more than 400 companies.
A series of industry scandals, bankruptcies and other financial troubles cost crypto investors billions of dollars last year. The resulting turmoil pushed regulators around the world to tighten their oversight of the assets. Venture capital firms have also scaled back their bets.
Animoca, however, is still seeking to expand its empire. Valued at about US$6 billion last July, it is aiming to close US$1 billion in investment this quarter to start its new Animoca Capital fund. The venture will focus on investing in later-stage Web3 companies, which Siu said will be less risky bets than the early-stage start-ups that the company directly backs.
Since Hong Kong announced its virtual asset plans at the end of last October, regulators have been moving quickly to try to entice business back to the city after an exodus in the preceding few years to places like Singapore, Dubai and the Bahamas.
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“This happened in the space of less than six months … There’s an urgency and a rush that’s unprecedented in Hong Kong’s history,” Siu said. “I think the [crypto industry’s] narrative for 2023 and maybe up until 2024 will be led by Asia, and I think Hong Kong has a very strong chance of being a leader in the space.”