Improbable, a British gaming and metaverse startup, is set to raise a new funding round of $111 million with the company valued at $3.6 billion. Improbable specializes in building interconnected user experiences in the metaverse and is known for partnering with Bored Ape Yacht Club for the “Otherside” metaverse.
Herman Narula, the CEO of the company, said that thanks to recent collaborations Improbable is finally close to operating at a profit. One big reason for its success in 2022 is working with Animoca Brands and Yuga Labs for the Otherside metaverse, which has contributed a significant part of its revenue in 2022.
In April, Improbable signaled its pivot into Web3 when it launched a Web3 infrastructure entity M² to provide the technology for interconnected virtual worlds. M² received $150 million from Softbank and a16z, and was valued at $1 billion.
Although Improbable has struggled to turn a profit, in 2017 it turned heads when it raised over $500 million in a funding round led by Softbank. The current valuation of the company at $3.6 billion is up from $2.8 billion in 2021.
From the looks of things, Improbable has found its market fit in Web3 despite having to compete with an uncertain global economy and a crypto winter that could get colder. Perhaps the fresh funding round will give the company the capital it needs to weather the storm.
Web3 Investments Continue in Chilly Crypto Winter
There’s no doubt that investments in Web3 companies and projects have been affected by the slump in crypto prices in recent months. But despite the bear market, some Web3 companies are continuing to raise capital. Here are the top three Web3 investment stories from Rarity Sniper this month.
About a month ago, Kevin Rose’s Proof Collective announced it raised $50 million in a Series A funding round led by a16z, Gary Vee’s VaynerFund, and others. The company plans to use the funds to empower the creative community by creating Web3 development tools.
Next, Dust Labs, the creator of the popular Solana collections DeGods and y00ts, raised $7 million in a strategic funding round led by Solana Ventures, FTX Ventures, Jump, and Foundation Capital. Dust Labs produces tools for NFT communities on the Solana blockchain.
Finally, the NFT company Doodles recently announced it raised $54 million in a funding round led by Reddit co-founder Alexis Ohanian’s company Seven Seven Six. The funding round placed Doodle’s valuation at $704 million. The funds will be used to expand the brand’s reach in music and entertainment.
Bear markets are for building, and perhaps no company understands this as well as the metaverse-building company Improbable. While it could time for Improbable to reach its ambitious metaverse goals, the influx of cash from its latest funding round shows people are still betting on the likelihood of Improbable’s success.