Web3 gaming investors more ‘choosy’ in crypto winter - Animoca’s Robby Yung
Investing in Web3 gaming has required a greater level of due diligence through a testing cryptocurrency bear market, according to Animoca Brands CEO Robby Yung.
Yung, who is also co-founder of popular Metaverse platform The Sandbox, highlighted more robust check-boxes when considering Web3 gaming investments while speaking at the European Blockchain Convention in Barcelona.
Related: Animoca still bullish on blockchain games, awaits license for metaverse fund
The Animoca Brands CEO said that investment propositions involve finding a mix of passionate teams with specific skill sets who are building product ideas that have a clear market fit:
Yung added that the stage of development of prospective projects that Animoca Brands considers investing in is typically more mature when compared to the standards it had a couple of years ago.
Investors are more demanding as a result, requiring tangible progress for projects that are seeking to raise capital:
While investors may be more discerning, Yung also conceded that companies continue to raise money and that the second half of 2023 has been a testament to that with a number of deals being done:
User acquisition also remains a hurdle for the Web3 gaming space, which Yung attributed to challenges around the distribution of games. He pointed to hesitance from mainstream gaming platforms to list games that have Web3 infrastructure:
Yung believes that mainstream players remain uncertain about the implications of including Web3 infrastructure in their offerings, which has initially led to a knee-jerk reaction:
The Animoca Brands CEO added that the conclusions drawn prevented players like Steam, EA and Epic Games from learning more about the possibilities and engaging with the Web3
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