24 November 2021 13:53, UTC
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Avocado Guild, a blockchain gaming startup similar to the a16z-backed Yield Guild Games, raised $ 18 million in a Series A funding round.
The round was attended by Animoca Brands and QCP Soteria Node (QSN), in which Solana Ventures, Three Arrows Capital, Polygon Studios and others participated. During the round, Avocado Guild’s six-month-old valuation was $ 200 million.
This is the first fundraiser for a startup and this is a round of equity capital, said founder and CEO Brendan Wong. But investors will also receive several AVG tokens, he said. AVG Is Avocado Guild’s own token that hasn’t been launched yet.
It looks like there are too many followers in the round. According to the presentation, Avocado Guild was going to raise just $ 5-8 million for its Series A.
It is noteworthy that by the end of this year, the startup should have raised $ 80 million. The revenue rate is a forecasting technique that allows firms to forecast their financial performance for the coming period based on past earnings data.
What are game guilds?
As a blockchain gaming guild, the Avocado Guild buys in-game items and gives them away in exchange for a share of the rewards earned by players.
Take Axie Infinity as an example. The game requires players to purchase three “Axie” – playable creatures with unique traits.
Axie can be expensive. According to tracker ChillAxie, Axie’s current minimum price is around $ 100. This means users will have to spend at least $ 300 to start playing the game.
With guilds like Avocado Guild and Yield Guild Games, players won’t have to buy assets like Axie and instead borrow from those guilds.
These guilds run what are known as “scholarship programs,” in which the guild community manager lends in-game assets to a scientist or player. The awards are then distributed between the manager and the scientist.
Avocado Guild currently supports seven games, including Axie Infinity, Cyball, and Revv Racing. Its fellowship program has over 7,000 participants, with plans to increase to 12,000 by the end of this year.
Guilds are gaining momentum
Funding for Avocado Guild came three months after Yield Guild Games (YGG) raised a $ 4.6 million small round led by a16z. According to CoinGecko, the price of YGG token has skyrocketed since its launch, with a current market cap of over $ 780 million and a fully diluted valuation of nearly $ 9 billion.
This partly explains why Avocado Guild’s funding round was exceeded with the backing of well-known investors – while the intersection of cryptocurrency and gaming is a hot topic right now.
“We believe the P2E industry is still in its infancy,” Wong said. “There are over 1 billion active players worldwide who still need to get to know this amazing movement. The guilds of this space are the engine that powers the P2E economy. P2E is here to stay and AG is committed to helping build the future of Web 3.0. “
Avocado Guild currently employs 14 people and is looking to expand its team into engineering and operational functions, Wong said.
Avocado Guild is also currently in the process of transitioning to a Decentralized Autonomous Organization, or DAO. “The transition to AvocadoDAO continues as we develop smart contracts required to transfer control to token holders. We are currently planning to launch our token to start the process, ”Wong said.
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