The Sandbox, a developer of web3 gaming and metaverse, raised $20 million in strategic funding via a convertible promissory note, a type of debt that can later turn into equity.
Kingsway Capital and Animoca Brands led the financing, which received additional support from LG Tech Ventures and True Global Ventures, according to a company release. The funding brings The Sandbox's total valuation cap to $1 billion.
The Sandbox develops metaverse-based virtual worlds that include gaming elements. The firm intends to publicly launch a new multiplayer gaming experience as well as a decentralized metaverse for mobile devices by 2025
"We are deeply honored by the continuing commitment to the vision of The Sandbox, and we’re incredibly excited about the future of composable user-generated content games," said Animoca Brands co-founder and executive chairman Yat Siu in a statement. "McKinsey estimated that by 2030 the metaverse could add $5 trillion to the global economy; today, games like Minecraft and Roblox are some of the most popular titles in the world, but they do not provide their users with digital property rights. The Sandbox represents the evolution of UGC games for the age of digital ownership."
The Sandbox's native token SAND was valued at $0.48 after seeing a 2.67% increase in the past 24 hours, The Block Prices shows as of 10:11 a.m. ET (14:11 UTC) on June 6.
The Block reached out to Animoca Brands for additional comment on the financing.