Futureverse Raises $54M After Diversifying Into Crypto, AI, Gaming, and Metaverse
Renewed interest and an improving regulatory outlook are some of the catalysts likely to fuel investments into the embattled cryptocurrency sector. In the race to attract investments, companies and startups are becoming increasingly creative in the push for much-needed financing. Futureverse is the latest to raise $54 million in fresh funding after merging with 11 different startups.
Futureverse Funding Round
Futureverse, which began as a tie-up of eight companies late last year, continues to attract investor interest owing to its exposure to blockchain, artificial intelligence, metaverse, and gaming segments. Some of the big investors that participated in the $54 million funding round included Ripple Labs, which has seen its sentiments improve after a US district judge refuted claims it sold ripple cryptocurrency as securities. Crypto investment firm 10T is also believed to have participated in the funding round.
The massive investment comes on Futureverse embarking on an aggressive restructuring drive to reinvigorate its sentiments. The company has already laid off nearly 20% of its staff as it sought to strengthen its competitive edge amid a challenging macro environment. The massive cash injection gives the company much more stability and resilience to weather any storm as the crypto industry tries to bounce back.
Diversification Drive
Blockchain is also an important part of Futureverse’s prospects. However, it is not the only thing that the company does. The underlying technology behind various digital assets accounts for only 10% of the company’s tech stack.
Instead of focusing on cryptocurrencies, Futureverse has sought to diversify its footprint as one way of weathering down industry headwinds. For instance, it offers a tech infrastructure that allows users to enjoy a unique experience in the metaverse world. In addition, it has stakes in the non-fungible token segment with FLUF world, which is a collection of NFTs
The company is also flexing its muscle in the embattled metaverse world that has lost its buzz and hype after Facebook changed its name to Meta and turned its attention to artificial intelligence technology. According to the company’s CEO, Aaron McDonalds combining metaverse with artificial intelligence promises to unlock more value.
Drying VC Investments
Diversifying interests and operations across various emerging technologies is the only way to attract investments. Venture capital firms have continued to sour the crypto sector, with investments in crypto and blockchain firms shrinking to $2.3 billion in the second quarter compared to $8 billion raised in the two sectors last year during the same period.
At the height of the pandemic, crypto-focused companies attracted a record $13 billion amid the explosive move in cryptocurrencies. Fast forward to a challenging business environment compounded by regulatory pressures and high-interest rates has seen deal flow shrink significantly. Rising interest rates have made it difficult for many investors to find the much-needed investment capital to bet on long-tail risk assets.
The amount of cash invested in crypto companies has also declined significantly as venture capital firms and investors maintain a cautious approach. On the other hand, only startups focused on crypto trading exchanges and lending are attracting investments amid the cuts.
