Quick take:
- Noteholders will be able to convert their holdings into the equity of Bacasable Global Limited the corporate name of The Sandbox.
- The Sandbox said it will use the capital to advance its vision of building a decentralised virtual world.
- Sebastien Borget, president of The Sandbox said his company, which counts 300 employees, now has enough capital to operate for five years or more.
The Sandbox has completed a $20 million fundraising via a convertible note. Kingsway Capital and Animoca Brands co-led the round with participation from LG Tech Ventures and True Global Ventures.
The note was issued at a valuation of $1 billion, The Sandbox said in a statement on Thursday. According to the announcement, noteholders will be able to convert their debt into equity of Bacasable Global Limited, the corporate name of The Sandbox, at the same terms as existing preference shares.
The Sandbox President Sebastian Borget said: “We’re excited to welcome new strategic partners who support our vision to develop the most accessible and inclusive platform that makes available the opportunities of Web3 to a global mainstream audience, and where brands and communities join hands to co-create the future of gaming and entertainment. The Sandbox is a proud believer in the power of the metaverse to shape our digital tomorrow to be collaborative, fair, and open.”
The Sandbox offers a metaverse platform driven by user-generated content. Users on the platform can engage in a variety of virtual activities and events including playing games, socialising and joining virtual concerts.
The company plans to use the funding to accelerate its vision of building a decentralised virtual world “where culture meets gaming and where the community is able to participate actively in and derive benefit from, the growth of the whole ecosystem,” The Sandbox wrote in a statement.
Commenting on the announcement, Yat Siu, executive chairman of Animoca Brands, said in a statement, “We are deeply honoured by the continuing commitment to the vision of The Sandbox, and we’re incredibly excited about the future of composable user-generated content games.”
Although the metaverse hype seems to have calmed over the past year, market research firm McKinsey once estimated it could be worth $5 trillion by 2030.
Companies involved in the industry now seem to be adopting more subtle phrases like virtual worlds and 3D interactive digital spaces as they continue to build. But platforms like the Sandbox believe while the likes of Roblox and Minecraft offer their own versions of metaverse experiences, they lack the advantages of leveraging blockchain technology to provide their users with digital property rights.
“If we can empower our economy and keep it growing, we can enable people to build their own experiences on their phones using Game Maker,” Arthur Madrid, CEO of The Sandbox, told GamesBeat. “They can launch their experiences on virtual land and start monetizing.”
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