A Traditional Mobile Game Company in Trouble
Founded in 2014, Animoca Brands initially thrived in the mobile gaming boom, releasing 170 games with over 160 million cumulative downloads. Its unique strength was securing popular IP licenses—Garfield, Doraemon, Ben 10, and Astro Boy—to create hit titles. However, by 2015–2018, mounting license costs and fierce competition caused negative operating cash flow, and share prices collapsed by more than 95%. The company even dabbled in e-books to survive.
The Pivot: 2018 and the NFT Opportunity
In 2018, CryptoKitties went viral, and Animoca Brands saw the potential. It secured a license to distribute CryptoKitties exclusively in China. Though revenues were modest, co-founder and chairman Yat Siu realized that digital property rights would transform industries through financial inclusion. In August 2018, Animoca Brands acquired the sandbox game The Sandbox and moved it onto the blockchain—a watershed moment. The Sandbox later attracted celebrities like Hong Kong tycoon Adrian Cheng, luxury brands Gucci, and sportswear giant Adidas.
Investment Empire: From Unicorn Hunter to Industry Leader
Animoca Brands didn't stop at game development; it became a prolific NFT investor. In 2018, it invested in Decentraland and Dapper Labs (NBA Top Shot). In 2019, it contributed $1.465 million to Sky Mavis, creator of Axie Infinity. Acquisitions included sports NFT ecosystem Lympo, game studio Blowfish Studios, NFT marketplace QUIDD, and more. In 2021, it invested in Yield Guild Games, Bloktopia, GuildFi, ConsenSys, and DeHorizon, and launched a $200 million fund with Binance Smart Chain. To date, Animoca Brands has invested in nearly 200 NFT-related projects.
The IP Gene: Why Animoca Brands Succeeded in the Metaverse
Years of IP licensing experience gave Animoca Brands a critical edge in NFT gaming. It secured sports IPs—F1, MLB, Bundesliga—and launched F1 Delta Time. In early 2022, its subsidiary nWay partnered with the International Olympic Committee to launch the official Beijing Winter Olympics game, issuing ice-themed NFT collectibles that became instant hits. The company’s obsession with globally recognized brands allowed it to pivot seamlessly into the NFT wave and build a diversified portfolio.
Skyrocketing Valuation and Future Plans
In May 2021, Animoca Brands raised $88.88 million at a $1 billion valuation with investors like Kingsway Capital and RIT Capital Partners. Five months later, it secured $65 million at a $2.2 billion valuation, with participation from Sequoia China and Tron’s Justin Sun. In January 2022, it raised $358.8 million led by Liberty City Ventures, joined by Gemini Frontier Fund, ParaFi Capital, and Sequoia China, pushing post-money valuation to $5 billion. Reports suggest KKR and others are seeking to increase the round to $500 million, and the company aims for another round targeting a $10 billion valuation. On the product side, Animoca Brands continues developing NFT games like Crazy Kings, Crazy Defense Heroes, and a highly anticipated 3A blockchain TPS game Phantom Galaxies, aiming to bring true gaming quality to the blockchain space.