Tech firm Metaverse Improbable settles for £100m
Tech company Improbable is set to raise £100m from Elrondpotentially marking a turning point after posting record losses in 2021.
Unlikely, London-based creator of virtual world technology, raised $500m (£440m) from Japanese conglomerate SoftBank in 2017 – a record for a UK start-up – but posted a loss of £152m in 2021.
The metaverse technology company was touted to create successful video games, where thousands of players could simultaneously immerse themselves in vast virtual worlds and use its technology for simulations of real events.
However, aside from success with the British and US armies for its simulation capabilities, it was under-delivered, leading to a loss of £152 million and the need to sell various assets including studios for development in North America and China, in order to make a profit.
Now the company has shifted tack to create metaverses or “immersive virtual social environments” for customers, which founder Herman Narula says will triple Improbable’s revenue in 2022 to over $100 million and has caught the eye of Romanian blockchain technology company Elrond.
In April, Improbable raised £150m from SoftBank and Andreessen Horowitz to build M2 (M Squared), a metaverse platform that provides businesses with the tools to create their own virtual worlds.
“We are now a financially viable company with a really interesting growth rate because we have found a product suitable for the market in a new sector,” said Narula, who expects operating profit to follow in 2023. FinancialTimes.
“We are excited to invest and build together, at a critical time when the value and utility of the metaverse is being defined and shaped,” added Beniamin Mincu, Founder and CEO of Elrond.