Metaverse capital feast: Why do Facebook and ByteDance make a big bet?

On the way to realize the meta-universe, Zuckerberg and his Facebook are moving forward firmly.

Recently, the social media giant announced the launch of a $50 million Meta Universe Fund to support the company’s global research and project investment in Meta Universe.

Facebook said that the fund cooperation will focus on key areas such as the meta-universe economic system, privacy protection and data security, and technological interconnection.

Facebook’s meta-universal dream

Recently, Facebook announced the establishment of a Metaverse Fund called “XR Programs and Research Fund” with a fund size of 50 million U.S. dollars (approximately RMB 323 million) and a two-year period for the company’s global contribution to Metaverse. Research and project investment.

Facebook claims that Metaverse cannot be built by a single company overnight, and many of its products can only be fully realized in the next 10-15 years. It will work with policy makers, experts and industry partners to make Metaverse a reality, and this Metaverse Fund is a starting point.

From June this year, Facebook CEO Zuckerberg announced the latest plan to create the concept of “meta universe” within the company, and the social media giant’s path to meta universe has officially begun.

In July, the company officially announced the establishment of a “Meta Universe” product team under the VR Lab team to continue to study VR/AR technology to further develop and improve the “Meta Universe” concept.

By August, Zuckerberg used his avatar to chat with CBS reporters in a virtual meeting room about the work and future of Metaverse, causing global disturbances.

Until today, the establishment of a special fund and the investment of real money into construction, Facebook’s ambition in Metaverse is self-evident.

The capital feast in the meta universe

From the listing of Roblox , to the 9 billion acquisition of Pico by ByteDance, and Facebook’s series of actions, large companies have frequently set foot in the field of meta universe.

A reporter from “Blockchain Daily” found that many companies in Metaverse related fields have also received capital support. From virtual social platforms to virtual people, from generalized games to VR/AR companies, etc., behind these meta-universes are bidding, there are strong funds standing.

As shown in the figure below, Sequoia Capital participated in the US$100 million financing of Rec room, SoftBank participated in the US$100 million financing of Core Games, Sony participated in the US$1 billion financing of Epic Games, Tencent , Hillhouse Capital, and Wuyuan Capital. Participated in Yuanxiang Weisi’s US$40 million financing.

Metaverse capital feast: Why do Facebook and ByteDance make a big bet?

Previously, Song Jiaji, Dean of Guosheng Securities Blockchain Research Institute, said in an interview with a reporter from “Blockchain Daily” that there is a certain bubble in the current investment in the field of Metaverse, but the bubble is high expectations for the industry on the one hand, and also Will attract capital to enter.

Recently, at the “Meta Universe Conference” co-hosted by Entertainment Capital and Xian Feng Evergreen, Wang Tianfan, the managing director of BAI Capital, said bluntly that he is currently optimistic about the investment opportunities of Meta Universe and believes that the next generation of networks may be born here.

However, some investors told reporters that from the perspective of the solidity of the concept of Metaverse, it is not optimistic. But from the perspective of market speculation, capital is competing for the meta universe because it believes that young people in the future will pay for the high valuation and have the opportunity to speculate.

Chinese and foreign investments have their own merits

Although Metaverse has not yet reached a unified conclusion, the industry generally believes that the six technologies of blockchain, network computing, interactive technology, Internet of Things, artificial intelligence, and electronic games constitute its technical support. The software and hardware manufacturers derived from these six technologies have become the key to capital layout in the meta-universe.

Observing the recent investment cases of Meta Universe and concept stocks at home and abroad, we can find that games, interactive technology, and network computing are currently the areas where Chinese and foreign investors have reached a high consensus.

But on the other hand, Chinese and foreign investors also have significant differences in the layout of Meta Universe.

Judging from the above table, VR/AR hardware focusing on application-side games, virtual people, and display technology is the focus of the layout of Chinese investment institutions.

In addition, a reporter from “Blockchain Daily” combed Wind financial terminal concept stocks and found that 84 concept stocks, including Zhongqingbao, Ziguang Stock, Goertek, etc., were all concentrated in game development, VR hardware carriers, network communications and Computing and other fields.

In contrast, the constituent stocks of the US Roundhill Ball Metaverse ETF, including Facebook, mostly support game development platforms, software, and computing power, and focus on the underlying system architecture of Metaverse and privacy protection and data security. .

Some insiders analyzed to reporters that at present, the development of Metaverse is still in the early stage, emphasizing personal identity and social, immersive, low latency and other elements, and the way of gaming has driven the presentation of these early technological forms.

“At present, there are more terminal application scenarios for Meta Universe investment in China, but the underlying infrastructure of Meta Universe needs more attention. Without technical support, no amount of content is futile.” The above-mentioned person said.

Going back to Facebook’s Metaverse Fund this time, it will focus on key areas such as the Metaverse economic system, privacy protection and data security, and technological interconnection, which roughly coincides with the investment direction of US investors.

It is also worth noting that, as part of the Metaverse Fund’s research project, Facebook will cooperate with universities such as the University of Hong Kong, Seoul National University, and National University of Singapore on privacy and security data protection.

On the same day that the Meta Universe Fund was launched, Facebook suspended the development of Instagram Kids, an application that could provide age-appropriate content for children under 13 years old. U.S. congressmen and advocacy organizations urged Facebook to abandon the plan for safety reasons.

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