Although the concept of the metaverse is still in its infancy, it is Americans who are most likely to write the rules in space – as they are the frontrunners in fundraising, suggests a recent report. by Max Shannon, Digital Asset Analyst at crypto investment and research firm CoinShares.
The author finds that, although the industry is nascent, a large number of companies working on metaverse-related developments have sprung up since 2021, with the majority located in North America.
This is currently the most active area when it comes to the formation of new companies focusing on the metaverse. More precisely, half of all superinverse businesses are now concentrated in North America, the report says.
It added that regions like South America are being left completely behind, despite having more than 600 million inhabitants.
Following North America is the Asia-Pacific region with 31 percent of companies and the European Union with 14 percent of ultra-diversified companies, Shannon said.
Region of Metaverse companies:
Notably, Shannon considers regional fundraising for startups in the field to be quite important, arguing that,
“Metaverse can be fragmented by region. The region that uses the most capital for startups, who create and provide experience in Metaverse, are more likely to write Metaverse rules.”
And who leads in fundraising – it’s the North American companies.
Shannon said these companies have the opportunity to raise capital more often with a 50% higher number of rounds than the Asia Pacific region, which ranks second on CoinShares’ list.
Fundraising by Metaverse Region:
Additionally, the report shows that, despite steady growth through 2020, the popularity of metaverse companies will explode in 2021, with growth reaching 193% year-over-year.
The year coincided with social media giant Facebook rebranding itself as Meta, while also coming up with its own “Metaverse vision”.
Concluding, the report says that, while the metaverse may become “social change”, it is still “extremely early” and remains primarily a theoretical concept.
“Currently, most products and services have very low usage and unproven commercial viability,” says Shannon.
In the long term, however, things are likely to change, with growth in some indicators being “encouraging”, argues Shannon, going on to say,
“We believe that people’s attitudes and skepticism will change as its global importance is revealed [and] that the Metaverse that looks like today will not be the same as what the Metaverse looked like in 5, 10, 50 years and beyond. “