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News - October 5, 2021

Axie Infinity developer to raise $150m in a16z-led round at $3b valuation

Sky Mavis, the developer of the popular crypto-based online game Axie Infinity, is raising approximately US$150 million in series B funding at a valuation near US$3 billion in a new round led by Andreessen Horowitz (a16z), according to two people with direct knowledge of the deal,” The Information reported.

Details:

  • The deal follows a major boom in sales on Axie Infinity, which is on track to generate US$1 billion in revenue from in-game transactions by the end of the year. About 17% of the amount goes directly to Sky Mavis.
  • This would mark Andreessen Horowitz’s latest investment in the cryptocurrency space, after backing Yield Guild Games earlier this year. 

Dive deeper:

  • Amid Axie Infinity‘s rise in popularity, its players are starting to see lower daily earnings – prices of its in-game currency, small love potions or SLP, fell to roughly US$0.06 at the end of September from US$0.35 in mid-July. (Read: Axie Infinity faces big test as player earnings fall)
  • To help with this, Sky Mavis recently released plans to change up its axie breeding costs.

Source: https://www.techinasia.com/axie-infinity-developer-raise-150m-andreessen-horowitzled