Private-equity giant KKR in talks to back Animoca Brands in latest funding round doubling the metaverse-maker's valuation to $5 billion

• Private equity giant KKR is in talks to back Sandbox-owner Animoca Brands in its latest funding round.
• KKR's investment would bring the funding round to a total of $500 million, Bloomberg reported.
• Animoca Brands said it's targeting another round as early as this year.

The owner of the hit metaverse known as The Sandbox may get backing from private equity behemoth KKR.

KKR is in talks to back Animoca Brands' latest funding round, according to a Wednesday report from Bloomberg that cited people familiar with the matter. With an infusion from KKR, the company's latest funding round would hit approximately $500 million, Bloomberg reported.

The metaverse creator initially announced a $358 million funding round in January involving the Winklevoss Twins and billionaire investor George Soros. KKR, according to Bloomberg, is in talks to add to that round. KKR declined to comment on the matter. A representative from Animoca Brands did not immediately respond to Insider's request for comment.

The funding round valued Animoca Brands at $5 billion, more than doubling a prior funding round from October. Bloomberg said the company is aiming for another funding round as early as this year to bring its valuation to $10 billion.

Insider previously reported that the company plans to use the cash infusion to fund acquisitions, product development, and licenses for intellectual property. Animoca Brands has been focused on the booming market for digital collectibles known as NFTs as well as the emerging virtual venue known as the metaverse.

The company is invested in more than 150 of these types of businesses, including metaverse-game Axie Infinity, NFT-marketplace OpenSea, and CryptoKitties-maker Dapper Labs.

In the metaverse — a virtual reality where people interact and play as digital avatars — property sales are booming. On top of that, sales of NFTs have also surged. Last year, the market grew to $41 billion, according to one estimate.

NFTs and the metaverse run on the blockchain, the same technology that powers cryptocurrencies. Venture capital funds from the Winklevoss Twins and Andreessen Horowitz have been pouring into the crypto world. For private-equity firm KKR, Animoca Brands could become one of several blockchain-related companies it has invested in recently, Bloomberg said.