Classical investment circles are getting involved, as the American hedge fund Coatue is betting on NFTs and the metaverse

Author: Zhang Yangyang, Financial Community Blockchain Daily

Original Title: [This TMT King that Invested in Meituan and Didi is Entering the NFT and Metaverse Space](There is no doubt that NFTs and the metaverse have dominated almost all the hot topics in the blockchain field this year. Behind these two hot tracks, a powerful capital institution is quietly emerging—Coatue Management, a U.S. hedge fund that has almost invested in all TMT Chinese concept stocks. On November 23, Pokémon GO developer Niantic announced it has secured $300 million in new financing, which will be used to invest in existing games and new applications, as well as to expand the Lightship developer platform and build the metaverse. This round of financing comes entirely from Coatue. Testing the Waters in NFTs and the Metaverse Dapper Labs can be considered a major player in the NFT collectibles market. With its star card NBA Top Shot, Dapper Labs currently holds the top position in NFT sports collectibles, and its valuation has reached $7.6 billion after the latest round of financing. According to Tianyancha, Dapper Labs completed three rounds of financing this year, with the main investors changing to Coatue as sole or lead investor. The latter's investments can be described as generous: $250 million, $305 million, and $250 million (lead investment). Compared to the previous six rounds of financing for Dapper Labs, which were each in the millions, this amount has directly crossed a magnitude. Since September, the metaverse has begun to stand at the center of both domestic and foreign capital markets, becoming one of the biggest trends. With the help of a well-known AR game developer, Coatue is knocking on the door of wealth in the metaverse. On November 23, Pokémon GO developer Niantic secured $300 million in new financing—this $300 million comes entirely from Coatue, and the funds will be used to invest in existing games and new applications, as well as to expand the Lightship developer platform and build the metaverse. Coatue's general partner Matt Mazzeo stated, "Niantic is building an AR platform based on a 3D world map, and we believe this platform will play a key role in the next computer transformation." Only Investing in the Industry's Top TMT King In 1999, Philippe Laffont, a protégé of Julian Robertson, left Tiger Management and founded Coatue, focusing on the technology, media, and telecommunications (TMT) sectors. It currently manages nine funds and has become one of the largest technology investment institutions in the world. According to the latest "13F" report released by the U.S. SEC (investment institutions with assets under management exceeding $100 million must submit quarterly holdings to the SEC), in the third quarter of 2021, nine of Coatue's top ten holdings were internet technology companies. Regarding Coatue's investment style, it can perhaps be described as "tough and not talkative." Checking its official website reveals a cool demeanor with only three office locations and one email address. Partners and members of Coatue, including Philippe Laffont, rarely accept interviews or make public statements. However, this does not diminish its brilliance—since its establishment, its asset scale has jumped from $45 million to over $20 billion, with captured public companies including Meituan, Didi, Snap, and Rivian. Coatue's consistent investment style is to focus on the industry's top companies, heavily investing in leading private companies in the TMT sector: generous sales, either sole investment or at least leading investment, and continuous follow-on investments. According to Tianyancha data, abroad, since 2013, Coatue has participated in financing rounds C, D, E, and even F for super unicorns like Snap, Grab, and Reddit; in China, it has been involved with companies like Klook, Mafengwo, Meituan, Didi, ByteDance, Heytea, and Dingdong Maicai, following the trajectory of internet economic development, from platform giants to new consumption elites, with Coatue's presence behind them. Classical Investment Circle Bets on NFTs and Blockchain Games The "classical investment circle" can broadly be understood as traditional investment institutions such as PE/VC and family offices, which is actually a relative concept. As the blockchain concept moves into a broader view, a new batch of investment institutions focusing on the blockchain field has emerged. Currently, one signal is that as blockchain gradually moves out of the initial chaotic phase of industry development and into the mainstream, the classical investment circle has begun to sense the wealth emanating from this field. According to Tianyancha data, in 2021, blockchain was the highest proportion of all Coatue's investments, aside from fintech, totaling 11 instances. Specific businesses cover NFTs and blockchain games, crypto payment service providers, crypto auditing and security firms, exchanges, etc. Before this year, Coatue had never invested in blockchain. Coatue's blockchain investments began with Dapper Labs in the NFT and blockchain gaming space, which is currently one of the most sought-after tracks for blockchain financing. Previously in July, Jack Ma and Joe Tsai's family wealth management fund Blue Pool Capital made its first investment in a blockchain project by investing in the blockchain gaming company Animoca Brands. According to a reporter from Blockchain Daily, an industry investor once stated, "We have started investing in NFT projects; there are no big opportunities in traditional internet anymore." However, opinions on the sudden influx of funds vary among industry insiders. Yu Jianing, the rotating chairman of the Blockchain Special Committee of the China Communications Industry Association, believes that the next decade will be the golden decade for the development of the metaverse, and the transformation window has quietly opened. NFT projects and development teams that are highly related to the metaverse are usually still in the early stages, and investment institutions that layout early have the opportunity to gain more dividends. Some industry insiders also told Blockchain Daily reporters, "The current market has a lot of funds, but that doesn't mean they really understand and comprehend." Additionally, whether related NFTs and blockchain games can be legally attempted remains in doubt, and if they are overseas, local policy constraints also need to be considered.