Blockchain gaming guild Avocado raises $18 million from Solana Ventures and others

Quick Take

  • Avocado Guild has raised $18 million from Animoca Brands, Solana Ventures, Three Arrows Capital, and others.
  • The six-month-old Avocado Guild is now valued at $200 million.

Avocado Guild, a blockchain gaming startup similar to a16z-backed Yield Guild Games, has raised $18 million in a Series A funding round.

Animoca Brands and QCP Soteria Node (QSN) co-led the round, with Solana Ventures, Three Arrows Capital, Polygon Studios, and others participating. The round brings just the six-month-old Avocado Guild's valuation to $200 million.

This is the startup's first fundraise, and it is an equity round, its founder and CEO Brendan Wong told The Block. But the investors will also get some AVG tokens, he said. AVG is Avocado Guild's native token that is yet to be launched.

The round appears to be heavily oversubscribed. According to a pitch deck seen by The Block, Avocado Guild was looking to raise only $5-$8 million for its Series A.

Notably, the startup is on track to an $80 million revenue run rate by the end of this year, according to the deck. Revenue run rate is a forecasting method that enables firms to predict their financial performance over a coming period based on past earnings data.

What are gaming guilds? 

As a blockchain gaming guild, Avocado Guild purchases in-game items and lends them out to play-to-earn game players in return for a share of rewards earned by the players.

Let's take an example of the Axie Infinity game. It requires players to buy three "Axies" — in-game creatures with unique traits — for playing the game.

Axies can be expensive. The current floor price of an Axie is around $100, according to tracker ChillAxie. That means users will have to spend at least $300 to start playing the game.

With guilds like Avocado Guild and Yield Guild Games, players won't have to buy Axie-like assets and instead borrow them from these guilds.

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