With a valuation of more than $3 billion (£2.64 billion), the London-based metaverse startup Improbable is on track to close a $100 million (£88 million) investment round.
Improbable, established in 2012, develops metaverse infrastructure that enables game developers, academic institutions, businesses, and other enterprises to create their own virtual worlds. Additionally, it works with the US and UK militaries, using the company’s simulations for training.
The company has a track record of successfully resolving density and presence challenges, resulting in fantastic experiences in games and live events. More than 10,000 real users can interact in high-fidelity, lag-free environments simultaneously and in the same location, thanks to its Morpheus technology, which enhances social interaction and a sense of presence in virtual spaces.
The technology was showcased at a series of large-scale events, including a fan event with K-pop sensation AleXa in the metaverse. Fans were free to explore the vast virtual stadium, dance in the crowd, and interact with the performers.
Despite numerous substantial investments from well-known backers, the company has not yet achieved profitability. According to its most recent published records on Companies House, losses for the fiscal year that concluded on December 31, 2020, were £129 million. According to records viewed by The Financial Times, its losses increased to £152 million in 2021.
In a recent interview, Herman Narula, co-founder and CEO of Improbable, expressed his confidence in the company’s ability to turn a profit.
“We are now a financially sustainable business with a really interesting growth rate because we found product-market fit in a new sector,” said Narula.
The company had sold its game studios in Seattle and Canada earlier this year, among other business divisions that weren’t in sync with its business strategy.
Elrond, a blockchain business, led Improbable’s most recent investment round. SoftBank, a Japanese giant, has also supported Improbable in the past. SoftBank took part in the company’s $150 million fundraising round in April.
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