the Sandbox Secures $20M Funding at $1B Valuation, Boosting Metaverse Development

Metaverse is a platform for gamers. Sandbox has raised $20 million with 1 billion in value as it seeks to expand its multiplayer gaming platform based on user input.

Kingsway Capital and Animoca Brands were the lead investors in the funding round, which included investments in the form of LG Tech Ventures and True Global Ventures, similar to the press announcement.

The Sandbox was expected to raise $400 million in 2022. The Sandbox looked to bring in $400 million, with a valuation of $4 billion.

SAND, Sandbox’s primary token, increased by 4.5 per cent after the announcement of its funding round, and its market value is currently $1.1 billion, as per CoinDesk’s information.

Part of these funds is expected to be utilized to create a decentralized metaverse that will be available to mobile devices. This is scheduled to launch in 2025. It is expected that the Sandbox will also be updating its Game Maker and 3D editor tools.

“McKinsey estimated that by 2030, the metaverse could add $5 trillion to the global economy,” Yat Siu, cofounder and CEO of Animoca Brands, said. “Today, games like Minecraft as well as Roblox are among the most loved games worldwide, however, they don’t serve their players with digital rights to their property. Sandbox Sandbox is the latest development of UGC games to the era of ownership via digital technology.”

The Sandbox includes 5.7 million users’ accounts connected to crypto wallets. More than 1,000 experiences created by users have been developed since the Alpha version launched in November 2023.

The Sandbox is a renowned creator of user-generated material (UGC) metaverse service, raising $20 million of funding via convertible promissory notes with a maximum value of $1 billion.

This major investment round points to an ongoing enthusiasm for the metaverse as well as the NFT space despite the recent market turmoil. Here are the main points of the funding:

1. Funding details:
   • The amount raised was $20 million.
   • The cap on valuation is $1 billion.
   • Type of funding: Convertible promissory note
2. Investors:
   • Principal investor: Kingsway Capital and Animoca Brands
   • Additional participants LG Tech Ventures and True Global Ventures
3. Use of funds
   • The capital raised is used to further The Sandbox’s vision for a decentralized virtual universe, which will focus on:
     • Updates to Game Maker and VoxEdit 3D editor tools
     • The introduction of new social interactions and avatar capabilities
     • The possibilities for gameplay are expanding with the introduction of a new rules system for multiplayer.
     • A mobile version is being developed of the metaverse decentralized (expected to be launched in 2025
4. Platform development
   • More than 5.7 million accounts of users connected to cryptocurrency wallets
   • The more than 1000 user-generated experiences are live on the map.
   • More than 400 partnerships with international brands
   • 330,000+ game creators downloaded free Game Maker
5. Market context
   • The funding is coming at a time when metaverse-related interest has been declining as of late, as evidenced by Google Trends data showing a 50% decline in metaverse search queries in the past six months.
   • The investment is a testament to the company’s belief in the power of user-generated material along with digital property in the gaming industry.
6. Future perspectives
   • The Sandbox hopes to draw new creators who aren’t yet experienced through a variety of initiatives.
   • The plans to explore new markets in areas such as Vietnam, Saudi Arabia, and Africa
   • The focus should be on creating Web3 opportunities available to the worldwide public.

This round of financing of The Sandbox indicates that despite the volatility of markets, there is an enormous amount of curiosity and opportunities in the metaverse as well as NFT, specifically for platforms that focus on the creation of user-generated material along with digital ownership. This round of financing of The Sandbox indicates that despite the volatility of markets, there is an enormous amount of curiosity and opportunities in the metaverse as well as NFT, specifically for platforms that focus on the creation of user-generated material along with digital ownership.