Metaverse from the VC point of view

The term Metaverse went from relative anonymity to almost 100% exposure in October last year. While Metaverse rose to fame initially due to Facebook’s name change into ‘Meta’ to express their ambition to become a Metaverse company within 5 years (and perhaps deflect some of the negative PR), there are now many large companies, startups and brands working on their metaverse strategy. As investors in gaming, entertainment tech and consumer, this is a topic Remagine Ventures have been actively researching and investing in at for the past few years.

WHY IS IT INTERESTING, ESPECIALLY NOW?

While games like Second Life, SimCity, Minecraft and the likes have existed for a while, three things are fundamentally different now: 

1) Timing the pandemic made a huge impact on consumer habits. It meant more time spent at home and much of it in front of screens. Working from home and social distancing translated to doing more things virtually – from virtual workouts to attending virtual concerts. Timing wize, Facebook’s public rebrand certainly helped, and since then we’ve witnessed a string of large tech companies and brands announcing their plans for the Metaverse. 

2) Technology – Blockchain/Defi/Web3, 5G/6G and stronger GPUs, cloud gaming and graphic engines like Unity and Unreal, advanced GPUs, hardware (such as the Oculus Quest 2, the first mainstream VR headset at $300 a pop, with over 10 million units sold in 2021) all make it easier for the Metaverse to succeed now.

3) Generational readiness – Gen-Z, also known as ‘digital natives’ grew up with mobile devices and virtual worlds like Roblox and audio rooms like Discord or RecRoom spending more time online than any generation before.

For many of them, the time spent gaming is also social, interacting with friends online in and out of the game. Additionally, the rise of NFTs (non-fungible tokens), which reached $23 billion in sales in 2021, acted as a gateway drug for faster adoption of crypto-gaming, virtual goods trading and strong community engagement online. The rise of the creator economy, driven by the growing number of creators and the consumer shift to consume information created by individuals, is also playing a role in our readiness for the Metaverse.

For more information about the opportunities visit the original article by Eze Vidra,
Co Founder and Managing Partner at Remagine Ventures

Metaverse by NVIDIA & Microsoft

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