Viewpoints: July 2022 wrap-up

August 11, 2022

Welcome to this month’s curated digest of viewpoints, news and investment activity covering the Metaverse, XR and Spatial Computing - brought to you by FOV Ventures. We're always on the lookout for fellow investors and founders, so if you find the digest useful, please forward us along!

Despite summer kicking in July was an active month for us. We appeared again in Sifted, highlighted as one of the new European VCs to launch this year. And we launched our new DVRSTY initiative (see more below). Expect a slightly quieter August as we prepare for what's likely to be a busy rest of year!

Dave Haynes & Petri Rajahalme (FOV Ventures)

In this edition:

  • Diversity in the Metaverse

  • Startups and fundraising

  • Major Platforms & M&A

  • Datapoints

DVRSTY - building a more diverse Metaverse

We believe that the next generation of the Internet should be built by a more diverse set of founders than the last. So we've setup up DVRSTY as a community initiative to help accelerate those founders in creating ambitious new companies within the Metaverse and Web3. We will do this primarily by connecting them with capital, network and talent.

Our first activity is a series of Office Hours that is open to diverse women founders in Europe currently starting their company and/or raising their first capital. We’ll connect those founders to investors actively investing in Metaverse and web3 including NP-Hard Ventures, Sure Valley, Connect Ventures, Supernode Global, GFR Fund and ourselves, FOV Ventures. As well as leaders from within the industry that are there to provide support, connections and feedback.

Founder can apply at http://fov.ventures/dvrsty by 19th August. And please help us spread the word 🙏

Startups and fundraising

Gaming companies thrived in July. XR Games raised $7m in funding to grow its team and develop its IP. Klang Games raised $41m, to create an MMO crossed with multiple virtual worlds. And moving from video games to more solid board games; Magicave raised $6.4m in funding to develop its case for bringing tactile gaming to the digital world.

Companies that explored smaller 'components' of the metaverse saw some attention too. Condense Reality, a metaverse streaming platform, raised £3.7m in funding. Hologram, a virtual avatar firm, raised $6.5m to continue its development. Tribute Brand raised $4.5m in funding to develop its vision of the future of fashion. If you needed an extra hand with your musical chops, Melon raised $5m in seed funding to continue its ambitions as a musical metaverse agency.

Other companies sought to create their own platform, though highlighting different aspects. REALM received $10m to build a 'sustainable' metaverse, for example. Anipen raised $8.3m to double down on engaging AR content as part of its own metaverse platform.

Finally, Animoca Brands raised another $75m, bringing its total value to $5.9bn. Despite a supposed 'crypto winter,' large players continue to thrive in the space. We will see Animoca Brands again below...

Major Platforms & Acquisitions

If the Metaverse Standards Forum is comprised of web 2.0 companies, then the newly-established Open Metaverse Alliance (OMA3) is a club for budding web3 organisations. Led by Animoca Brands, the club is joined by Decentraland, The Sandbox, and many other high-profile organisations to agree upon open standards for spatial computing. We will keep a close eye on the standards that are agreed upon across both groups over time - and whether there will be parity when it comes to the metaverse.

Otherwise, gaming-related titles saw interest as well. Resolution Games acquired Zenz VR, as it also revealed record-breaking revenue figures on its growth - the Demeo and Blaston developer continues to thrive. Meanwhile, NetEase Games invested 'millions' into Something Random, a polish VR studio.

One last anti-inclusion: the Federal Trade Commission blocked Meta from acquiring Within, in an effort to protect competition. Another good example that shows how the US operates via the lens of competition when it comes to acquisitions.

Datapoints

That’s all for now. Have a great August, and as always, please do send us your feedback, comments, or any interesting new startups you know of in this space!

Dave Haynes & Petri Rajahalme (FOV Ventures)