The web game company Illuvium has raised $12 million in its first funding round, with contributions from investment firms such as Australian venture capital firm King River Capital, Arrington Capital, and Animoca Ventures.
This funding will be used to develop new games within Illuvium’s technical system, as the company prepares to release a new batch of games in the second quarter of 2024.
Illuvium allows players to earn ILV currency within its games. In its announcement of its new product, Illuvium highlighted its standout feature, which is a revenue-sharing investment model that allows users to benefit from in-game revenue by earning ILV tokens.
Kieran Warwick, the co-founder and CEO of the company, stated in a press release: “The idea of redirecting 100% of all in-game revenue to participating investors is a major attraction to encourage the use of ILV currency, which has been exceptionally well received in our community.”
Illuvium’s offerings may be more complex than some other web3 games, and its technical system based on play-to-earn mechanics is perfectly suited for strategic players, revolving around interconnected gameplay. The system consists of four games in total, two of which are in the early testing phase.
Illuvium Beyond allows players to compete to create Illuvatars, which are non-fungible token (NFT) collectibles, while Illuvium Arena, a player-versus-player game, is still in early access. New players in Illuvium PVP receive three pre-built decks of cards, with teams of Illuvials fighters that can be taken into player-versus-player combat arenas, equipped with gear and enhancements. As players progress in the game and level up their Illuvial fighters, they can merge items to create new fighters or advanced forms of Illuvials for more effective battling.
On the other hand, the Illuvial system offers several ways to reward players, either by capturing Illuvial fighters for sale in the store, achieving a high rank on the leaderboard to earn ILV tokens, or staking ILV tokens to earn more of them or other rewards.
Launch of a $100 Million Game Funding Fund
Last week, King River Capital, Immutable (a blockchain gaming company), and Polygon Labs announced their collaboration to launch a $100 million Game Funding Fund.
The three companies stated that the new fund, named the “Deterministic Gaming Fund,” is a “system-neutral fund,” the first of its kind, and will identify high-growth opportunities for investors. King River Capital will lead the investment process, alongside two other specialized companies providing primary resources and expertise in the web3 gaming sector.
Expectations for Game Revenue Growth in 2024
Estimates suggest that funds raised from blockchain gaming-related funding rounds reached $1.7 billion in 2023, with a significant portion allocated to the development of 270 blockchain games on Immutable’s technical system.
