Immutable, a Sydney NFT start-up, has recently completed a feat that many start-ups only dream of – raising and securing a stunning $200 million in funding.
But it hasn’t been an easy path to success for Immutable – formerly known as Fuel Games – as co-founders James and Robbie Ferguson and Alex Conolly would reveal.
Spending the last five years building one of the nation’s most successful NFT companies, the latest influx of cash is a game-changer for the Sydney NFT start-up and the industry itself.
From humble beginnings in 2018 to the highs of multimillion-dollar investments, we explore how a Sydney based NFT firm secured $200 million in funding.
As the popularity of play-to-earn games rises, NFTs are essential in representing digital items such as weaponry and outfits. The ownership is recorded in a publicly visible ledger, referred to as the blockchain.
In turn, the NFTs can be bought and sold beyond the boundaries of the game – this is where Sydney’s NFT company Immutable comes in – which offers a Layer 2 blockchain, allowing businesses to build games and apps.
Founded in 2018, Alex Conolly and the Ferguson brothers set out to build a successful NFT start-up in Sydney, Australia.
Known initially as Fuel Games, the three co-founders had their hopes set high, wanting to build a successful company and achieve success by creating an industry-leading platform.
With the company’s provision of scalable blockchain infrastructure for world-class video games, Immutable set out to be unique in an untransparent world of in-game economies.
Immutable X – a pioneer in NFT technology and the company’s brainchild – focuses on Layer 2 liquidity solutions that guide scalability, affordability and power to the Ethereum NFT ecosystem.
What makes Immutable X an industry-leading platform is the ability to power the world of NFTs through high-performance minting and trading whilst still providing the security and decentralisation that Ethereum provides.
Immutable X is also powered by StarkWare’s StarkEx innovative technology, which is known to process 9000 transactions per second (TPS).
It offers a great TPS, but it accomplishes the fact with zero gas fees while also offering accessible on-and-off ramps in a carbon-neutral environment.
The NFT, Sydney based company, has extended its reach by announcing integrations with leading marketplaces such as Mintable and OpenSea.
Immutable is also involved and powering some of the largest NFT projects and games, including Ember Sword, Gods Unchained, ESL Gaming, Guild of Guardians, Illuvium, Vee Friends and TikTok – just to name a few.
In a recent Series B round in September 2021, the Sydney NFT company raised a whopping $60 million, accompanied by a $410 million valuation.
But in the latest Series C round, Immutable raised a staggering $200 million – led by Singapore investment fund Temasek.
The Singaporean entity is occasionally referred to as a sovereign wealth fund but distances itself from such attachments, instead calling itself a commercial investment holding company.
As of December 2021, Temasek boasted a mammoth $300 billion in total assets under its management.
While the Sydney NFT company came out as winners, they were up against stiff competition from the likes of Declaration Partners, Mirae Asset, Tencent Holdings, and ParaFi Capital.
Beating the likes of the aforementioned was no easy feat, but besting another major blockchain gaming company, Animoca Brands, cemented Immutable’s stance within the industry.
With Immutable’s prior money acquisitions, and the recent funding of Temasek’s $200 million, the Sydney NFT company’s overall valuation pushes them to Unicorn status, totalling a value of $2.5 billion.
Thus, placing the company in an ever-growing number of NFT-related businesses with valuations exceeding $1 billion.
After gaining Temasek’s mammoth funding, the Sydney NFT company has some exciting plans for the money.
Immutable has revealed that they aim to use the funds to expand its operations abroad while also expanding its team of 165 persons by 200 employees.
Additionally, the Sydney-based company plans to put the money towards the expansion of its gaming studio content.
Alex Conolly and the Ferguson brothers have proven why Sydney NFT’s success stories are achievable with enough hard work and dedication!
Immutable is not the only Sydney start-up company success story. With the likes of Canva and Afterpay hailing from the emerald city, Sydney is fast becoming the optimal destination for aspiring business owners and entrepreneurs alike.
With interstate rivals across the border, Melbourne’s former boastful status of successful; fintech start-ups has been overtaken by Sydney NFT businesses springing up rapidly within the city.
And with Immutable’s recent success, you can see why there are so many more start-ups in Sydney than in Melbourne.
Also known as the Delta Link Layer, Layer 2 is the second level in the seven-layer OSI reference model for network protocol design.
Boasting a security guarantee that exclusively depends on the main chain, Layer 2 moves data across linked physical networks, transmitting data to a destination according to Media Access Control addresses.
Now a household name, Ethereum is by far the largest blockchain globally. It has built up significant network effects in recent years and is the first-choice platform for many developers alike.
With enormous ecosystem support such as exchanges and wallets, Ethereum best represents the philosophy of trustless, decentralised asset ownership that businesses such as Immutable crave.
Simply put, if one were to build an NFT project, Ethereum would be the best option.
With NFT companies swearing by it and Sydney NFT company Immutable’s, Immutable X boosted by Ethereum’s ability to enhance scalability and liquidity, Ethereum is the safest bet.
Like many other aspects of life, investment – in a shape or form – is a tricky game and requires smarts, research and patience.
Investing in cryptocurrency is no different, but if you are willing to accept it as a high-risk gamble – which could very well pay off – and are diligent about it, it may very well be worth taking.
Again, going in with your eyes open is essential, so reaching out to the experts is placing your best foot forward and optimising your future.
Although only recently joining the elite group of unicorns, the Sydney NFT company, Immutable is dwarfed by some of the world’s leading NFT companies.
OpenSea – a platform that supports more than 150 different payment tokens – sits at the top of the mountain, with their value in the range of US$13.3 billion.
While others such as Rarible, Foundation and MakersPlace sit close behind the industry leaders, as of 2021, the overall NFT market has surpassed the US$40 billion mark.
Sydney start-ups (insert article link) are becoming more and more popular within the harbour city.
Diversity and lifestyle aside, Sydney boasts a diverse economy and a relatively stable, low-risk business environment. All while being supported by world-leading financial and legal systems.
Navigating your way through the modern world of Cryptocurrencies and NFTs can be challenging for some and near impossible to understand for many more.
Although Cryptocurrencies and NFTs use a similar kind of programming, that’s where the similarities end.
Unlike cryptocurrencies, NFT are non-fungible, leading to one NFT being as unique as the other, and are, therefore, valued differently due to their perceived value and demand.
For those that find the logistics of NFTs and cryptocurrencies mind-boggling, we here at Valles Accountants are able to lend a helping hand.
With offices in Brisbane, Melbourne and Sydney, we can aid you with all your cryptocurrency and tax questions that you may have after stepping into the world of cryptocurrency investment.
Drawing on 35 years of experience in accounting and investing, we can guide you and offer expert advice regarding which cryptocurrencies to invest in.
Always keeping one finger on the crypto pulse, we here at Valles Accountants pay close attention to the comings and goings of the crypto world – often liaising with the ATO.
This means our accountants are always the first to know of any movements in the crypto world, and in turn, our clients are as well