South Korea-based social media platform LINE NEXT has announced the completion of a $140 million raise earmarked to expand its reach within the Web3 ecosystem.
LINE disclosed that the funds will be deployed toward global business expansion and boosting Web3 adoption across Southeast Asia. The company has sights on non-fungible tokens (NFTs), wrapping up plans to introduce a digital market for collectibles, called DOSI, in early 2024.
As stated in the report, DOSI will operate as a mobile app for users and support the purchase and sale of digital collectibles for a global market.
Outside of NFTs, the company is mulling the launch of a social app to support communication between characters launched via artificial intelligence (AI). LINE’s statement indicates the launch of a suite of Web3 games designed to reach a wider audience.
LINE says it will provide Web3 solutions for firms seeking to confer full ownership of digital products to their customer, leveraging publicly distributed ledger Finschia as its architectural base layer.
The raise, led by Peter Thiel-backed private equity firm Crescendo Equity Partners, has been described as Asia’s largest Web3 funding round for 2023. The technology-focused private equity firm has considerable experience investing in Web3 projects globally, supporting fledgling firms with assets under management surpassing the $1.3 billion mark.
“It is significant that we were able to secure this funding in the context of a globally contracting investment environment,” said LINE CEO Youngsu Ko. “We plan to use this opportunity to further popularize Web3 and develop a new service ecosystem where users own the value of their digital goods.”
State of Web3 funding
New data indicates a dip in funding for Web3 projects, but metaverse-related initiatives have emerged as the industry’s leader. The overall metaverse investment rose by 44% in 2023, compared to 27% in 2022, as experts point to large capital outflows to AI verticals.
Early in the year, Animoca Brands reduced its anticipated Web3 fund by $1 billion, while other entities are hedging their bets by splitting funds into AI investments. SBI’s latest $600 million fund will invest in fledgling Web3 and AI startups, focusing on profitability and long-term sustainability.
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