Metaverse and gaming venture capital firm Animoca Brands plans to enter into a partnership with Saudi Arabia's NEOM Investment Fund focused on Web3 initiatives. The investment fund of NEOM – the project for a new urban area in northwest Saudi Arabia envisioned as a hub for technology, trade, entertainment and tourism – is proposing to invest $50 million in Animoca, according to an announcement on Monday.
Under the plan, Animoca will build Web3 service capabilities with global commercial applications alongside NEOM to support its aspirations as a futuristic tech hub.
As part of this partnership, Animoca Brands will collaborate with NEOM to develop new enterprise service capabilities with global commercial applicability. These will be deployed to support technological advancements in Riyadh and the NEOM region.
Web3 represents the third generation of the World Wide Web, incorporating concepts such as decentralization, blockchain technologies, and token-based economics. This strategic agreement also aims to establish a hub within NEOM dedicated to nurturing the local Web3 ecosystem.
“We are excited to partner with Animoca Brands to support the development of NEOM’s digital infrastructure.” - Majid Mufti, CEO of NEOM Investment Fund
Under this agreement, NEOM Investment Fund will put in $50 million in Animoca Brands. Of this amount, $25 million will be through the issuance of convertible notes at a conversion cap price of $4.50 per share, with the remaining $25 million invested in purchasing the company's shares on the secondary market.