VC Firm Sfermion Is Raising $100 Million to Invest in NFTs and In-Game Items

Leading NFT investment venture capital firm Sfermion is raising $100 million to invest in blockchain gaming NFTs and in-game items.
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Last Updated on June 6, 2022

Quick take:

  • Sfermion is raising $100 million to invest in non-fungible tokens designed for blockchain games.
  • Bloomberg reported the VC firm has already raised a fifth of the targeted amount, scheduled to be announced in June.
  • Sfermion specializes in NFT investments having accumulated several NFTs from the Cryptopunks and Meebits collections.

Sfermion a venture capital firm that specializes in investing in non-fungible tokens (NFTs) is raising $100 million to invest in virtual ice swords and in-game items. The firm is popular for accumulating several NFTs from the Cryptopunks and Meebits collection, both now owned by Yuga Labs.

Some of the notable backers of the fund include Marc Andreessen and the Winklevoss brothers.

Andrew Steinwold, the firm’s managing partner said the firm has named its next fund, which is its third, Halliday, referencing the fictional creator of the game featured in the book Ready Player One.

Sfermion plans to study blockchain games closely to determine which non-fungible tokens are likely to be successful. 

“For example, if the second level of a game involves defeating a fire-breathing dragon, Sfermion might purchase a large number of “ice sword NFTs” that are effective against the beast,” the report reads.

Sfermion is not ignoring the contradicting feedback the crypto gaming world has received from various factions of the general gaming market. 

While some leading video game companies have expressed an intention to diversify into blockchain gaming or add NFTs to their existing titles, other developers have remained resilient resisting the financial temptation associated with introducing play-to-earn games.

Steinwold maintained that the Halladay fund is not a get-rich-quick scheme, adding that the “firm plans to hold onto the NFTs until the games increase in popularity and the assets’ value appreciates.”

Sfermion is projecting 5% to 40% in annual yield earnings from gaming NFTs by allowing players to use them in competitions. It is leaning more toward the concept used by decentralised autonomous organisations (DAOs) BlackPool and Yield Guild Games (YGG), which have attained success by renting their collections to gamers in exchange for earnings yields.

The firm is planning to create two additional funds in the near future to invest in virtual real estate and consumer categories like collectibles, fashion and music. “We’re in the early stages of developing these metaverse economies, and there’s a lot that needs to be learned,” he said.

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