Sfermion, an investment firm focused on the non-fungible token (NFTs) ecosystem, is planning to raise $100 million for its third fund called "Halliday" to buy in-game digital collectibles, Bloomberg has learned.
Sfermion's Managing Partner Andrew Steinwold told the media that the firm will study in-game economics to find items that will likely help it to capitalize on its efforts. For example, the firm might purchase a "large amount" of NFTs if it believes that players will badly need them during the game. Basically, Sfermion wants to become an in-game trade broker that will hunt precious and rare items.
Yet, the firm doesn't have plans to resell all the tokens immediately. Instead, Sfermion will buy and hold assets for as long as the game gains popularity, and, therefore, affects NFTs' value. With some NFTs, the firm can generate an annual yield of up to 40%, Steinwold added.
However, the firm raised only a fifth of the total so far. Sfermion plans to reveal more details later in June.
Although the firm is still seeking capital for its third fund, it already has plans for the next ones: one focused on virtual land and another on digital collectibles like fashion and music. Steinwold declined to give an approximate timetable for future products.
Investing in NFTs as part of portfolio diversification has become a real thing for some VC firms. As To The Moon earlier reported that Andrew Jiang and Todd Goldberg formed a new fund called "Curated" that will buy "blue-chip NFTs" from creators. The fund secured $30 million in funding from a chunk of a16z's team members like Marc Andreessen and Chris Dixon, in addition to Electric Capital's Avichal Garg Reddit's Alexis Ohanian.