It’s safe to say that The Sandbox has had an impressive amount of growth and attention over the last couple of years. Now, according to a Bloomberg report, the Animoca Brands subsidiary and metaverse experience is aiming to raise up to $400 million in funding at a $4 billion valuation.
Of course, the figure comes from ‘people familiar with the matter,’ and may yet be a speculative figure. For the moment, any funding would be a matter of engaging with new and existing investors, as well as investor demand.
Hypothetically, if this new round did go through at this exact funding range, it would make for around 4x the size of its Series B in November. For those unfamiliar, Series B, which was led by SoftBank’s Vision Fund 2 came up to $93 million.
The Sandbox’s new funding foray: are the pieces set for it?
Of course, a lot of momentum for carrying this prospective funding round into reality comes down to market sentiment, but is there an appetite for a project with this big of a price tag?
If we take into consideration the number of major brands that have come over to The Sandbox, it wouldn’t be hard to sell a $400 million round. Over the past six months, we’ve reported on partnerships between the Metaverse experience and the likes of South China Morning Post, HSBC, and even playing host to the world’s first metaverse music video.
One thing that does give pause for thought, however, is the growing gulf between market valuation and active users. Coindesk reported on April 6th, that Axie Infinity, Decentraland, and The Sandbox reported decreasing levels of user activity.
The immediate effect of this was a drop in token values over that week. However, the question does persist – will its user base play into considerations for this new funding round?
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