Firms are raising fresh capital to build metaverse infrastructure

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The hype surrounding the metaverse has been higher than what it is now. Several leading tech giants have already announced their foray into the emerging technology, whereas others are expected to follow suit sooner rather than later. Touted as the next big revolution after the internet, the metaverse has the potential of changing the digital experiences for consumers across all aspects of their life. Already, many of the leading brands have launched shopping capabilities for consumers in the metaverse. These include Bloomingdale, Kate Spade, Benetton, and many more. Even e-commerce marketplaces such as Alibaba have launched metaverse shopping platforms to offer immersive shopping experiences to their customers.

Notably, a lot of innovation is taking place in the sector, and a lot more is yet to come. No one knows the true potential of the metaverse yet, and what it can achieve over the next three to four years, but firms are continuing to innovate in the sector to drive the metaverse forward. Consequently, these firms are also raising funding rounds to develop the metaverse infrastructure. For instance,

• In September 2022, Hadean, the metaverse infrastructure and developer startup, announced that the firm had raised US$30 million in a new funding round as part of its Series A investment. Notably, the investment round has been led by Molten Ventures. Some of the other venture capital firms and investors that participated in the round include 2050 Capital, Alumni Ventures, Entrepreneur First, Aster Capital, Epic Games, and InQTel. Hadean is planning to use the fresh capital to build the best metaverse infrastructure which can support the future growth of the sector.

Notably, the firm has already entered into multi-year agreements with firms in the entertainment and gaming sector for metaverse projects. The firm has built a robust metaverse infrastructure that allows thousands of users to enter the virtual world and experience the metaverse with minimal latency. Using the metaverse infrastructure provided by Hadean, CCP Games, one of the video game makers, launched a demo that allowed 14,000 gamers to use Unreal Engine to participate in a single online world.

• In September 2022, LootMogul, the sports-focused blockchain gaming platform, also announced that the firm had raised US$200 million. Notably, the firm is planning to use the fresh capital for building metaverse gaming environments, thereby allowing fans to engage with brands, teams, and athletes through virtual sports cities. LootMogul is planning to use the US$200 million investment for building 200 virtual cities, which it plans to make available across different platforms, including Meta’s Oculus. LootMogul is currently onboarding 1.5 million college and high school athletes and has also partnered with 180 professional athletes in the United States.
• In April 2022, The Sandbox, the firm that builds metaverse platforms, also announced that it is looking to raise US$400 million at a valuation of US$4 billion. Notably, the firm raised US$93 million in November 2021. In the metaverse, the firm had already sold real estate plots to various firms such as HSBC and Adidas, among others. Moreover, even celebrities have bought plots in the metaverse from The Sandbox. To further make advancements and drive innovation in the metaverse, the firm is planning to pursue acquisitions.

With all of these players planning to further investment in the development of metaverse infrastructure, TechInsight360 expects innovation in the sector to drive new economic opportunities for brands and businesses globally. While the increasing demand from the entertainment and gaming industry will continue to drive the metaverse industry growth over the next three to four years, healthcare is another sector where the metaverse can drive innovation and adoption of virtual worlds significantly. As innovation continues in the metaverse space, TechInsight360 expects these firms to raise more funding rounds from global venture capital and private equity firms from the short to medium-term perspective.