In the midst of turmoil within the metaverse industry, Improbable, a British company founded over a decade ago, has managed to maintain its position in the gaming industry by shifting its focus to the metaverse concept. Unlike many other businesses that have faced significant losses and challenges in the metaverse arena, Improbable has successfully reorganized its business functions and redirected its capital toward the metaverse.
Improbable’s CEO, Herman Narula, explained the company’s strategic shift from creating traditional games to providing experiences within the metaverse. This shift has allowed Improbable to reduce its losses from $159 million in 2021 to $23 million in 2022, while increasing its revenue to $95 million.
To further its metaverse ambitions, Improbable secured $150 million in new funding and launched MSquared, a network of interconnected metaverses, in April 2022. Notable investors in this funding round included Andreessen Horowitz (16z) and Softbank Vision Fund 2. Subsequently, blockchain company Elrond contributed an additional $100 million to Improbable.
Improbable’s Strategic Pivot: From Gaming to Metaverse Success
Improbable’s approach involves providing brands and businesses with the tools to create their own metaverse experiences, events, and interactions, utilizing technology that works seamlessly with blockchains and Web3 platforms. The company has collaborated with clients such as soccer teams and crypto projects, including Yuga Labs, the creator of the Bored Ape Yacht Club, which is involved in the metaverse called Otherside.
Improbable is also hosting virtual events, including Major League Baseball game watch parties and metaverse gatherings for soccer enthusiasts. Despite the challenges and negative aspects associated with the metaverse industry, Improbable remains committed to addressing the issues and believes that the metaverse presents a significant opportunity for crypto projects to pivot and thrive. Narula emphasizes the importance of NFT projects continuously engaging with their communities, especially those without access to substantial funding like Yuga Labs.
In a metaverse landscape filled with uncertainties, Improbable stands out as a company that has successfully adapted to the changing dynamics of the industry and is actively contributing to the development of the metaverse concept.