Created by former HBO executives, Shrapnel’s latest $20 million in funds will be used to continue the game’s development ahead of its free-to-play launch.
Shrapnel
Neon Machine, a blockchain gaming company created by a former HBO executive, announced today the close of its $20 million Series A.
The round was led by Polychain Capital, with participation from Griffin Gaming Partners, Franklin Templeton, Brevan Howard Digital and others.
It’s been an increasingly tough market for early-stage crypto fundraising. Around $7 billion has been invested into crypto companies in the first nine months of the year, according to Pitchbook and Messari, a 65% fall from the corresponding period last year. These are the lowest levels of quarterly funding since the fourth quarter of 2020, according to Messari.
Shrapnel’s “track record of consistently delivering exceptional pre-launch content and playable demos, and their ability to foster a passionate community since the seed round sets them apart.” Josh Rosenthal, lead partner at Polychain Capital, told Forbes in an emailed statement. Polychain was also an investor in the company’s $10.5 million seed round, which closed in November 2021.
But high production values for the game made it relatively easy to find investors interested in the company, says Mark Long, CEO of Shrapnel and former director of HBO digital products, where he led a foray into interactive entertainment. Other so-called Web3 games which used decentralized technologies like blockchain, “have been these kinds of egregious Ponzi schemes that really aren’t even games. We’re one of just a handful of premium projects in this category.”
The raised funds will help expand Shrapnel, the company’s debut game. The first-person shooter, blockchain-enabled video game allows users to create and own in-game assets like avatar skins, weapons and even their own maps. The game is built on the Avalanche
AVAX
Blockchain technology will be used to keep track of game purchases, which can be made in cryptocurrencies and dollars. Long says gamers won’t need a cryptocurrency wallet to play, but they can connect an external one–such as those from Metamask or Ledger–to have self-custody of their assets.
The dollar purchases are a business necessity. “There’s just not enough Web3 players in the world to sustain a major game franchise like ours,” Long says. Gamers will be able to play Shrapnel without ever interacting with the blockchain through a free version.
The use of blockchains has been a divisive topic in the gaming industry, with major publishers such as Minecraft provider Mojang Studios saying they would not support its use for non-fungible in-game tokens. “Gamers were sold the idea that things they buy will be interoperable between games. And that’s not true,” says Long.
Created by industry veterans, graphics have been a core focus for the team ahead of the game’s launch.
“The bottom line is it has to be a fun game, nothing else matters.” says Long.
The company is currently offering early access to its game through the sale of “extraction packs” containing characters and gear at prices ranging from $19.99 to $99.99. Free access to the game is planned for the second half of 2024, according to Long.
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Update: This article was updated on October 25 to reflect to correct a misstatement by the company’s on the timing of the planned release of the free version of Shrapnel.
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