Illuvium raises $18m Series A for blockchain integrated games
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The news: Cryptocurrency company and video game developer Illuvium has raised USD12 million ($18.4 million) in Series A funding to help launch new blockchain integrated games.
The numbers: Founded in 2020, the Sydney-based studio has banked USD60 million in funding to date. Its USD12 million Series A was supported by investments from Sydney-based VC King River Capital, Arrington Capital and Animoca Capital.
Over one million users have registered ahead of the release of the interoperable gaming platform, crypto parlance for a gaming world connected to different non-fungible tokens (NFTs). Illuvium is "on the cusp of unveiling" its new platform with a game set to be released in Q2.
The context: Illuvium's co-founder and CEO Kieran Warwick said the game's "major draw" is its revenue-sharing mechanism, which will see 100% of all in-game revenue redirected to staked investors.
Both high-yield staking and "play-to-earn" models have a precedent in crypto, sometimes with disastrous results like the USD19 billion collapse of the Terra cryptocurrency in 2022. Warwick said he believes the revenue distribution model will set a precedent for future releases.
The company said it wants to launch the blockchain's first AAA game — the gaming equivalent of a high-budget Hollywood blockbuster — aiming to bridge the gap between traditional gaming and the emerging crypto gaming market.
The source: Illuvium media release
