None of us knows exactly what the future will look like, so we use this ‘3 lenses framework’ to understand and scope what’s coming: ‘Follow the kids, follow the developers, follow the money.’
1. FOLLOW THE KIDS Kids around the world are spending huge amounts of time on virtual gaming platforms such as Fortnite, Roblox, Minecraft and many others. These games are just the prelude of the virtual economy. If you look at the spending patterns of kids on avatars, skins, weapons and other virtual assets, you get a clear view on how important virtual identity is in these virtual environments. Look at how much V-Bucks (the virtual currency in Fortnite) or Robux (same but in Roblox) they are spending already! It is estimated that Epic Games, the company behind Fortnite, made between $20 and $25 billion since the launch of the game, in vast majority through V-Bucks in-game transactions.
2. FOLLOW THE DEVELOPERS Developers always want to be at the forefront of what’s happening and many of them see the potential of this new wave of the Internet. As a result, large tech companies are rapidly losing talent to the new players on the block who are building the 3D, decentralised and exponential AI Internet. If the best engineers are focusing on these topics, you clearly know something is happening.
3. FOLLOW THE MONEY Last but not least, the fuel for growth. The largest investors in the tech world are setting up massive funds to invest in ‘virtual economy’ start- ups and platforms across the globe. Top tier VCs are making big moves in the space. Andreessen Horowitz, the leading venture capital firm, raised $7.1 billion of investments to be poured into AI start-ups and businesses. Major brands like Nike, Lacoste, Balenciaga and dozens of others are launching their projects, while hiring for dedicated teams and leadership positions. On top of that, looking at the massive R&D and acquisition budgets allocated by big tech players like Microsoft, Apple and Meta for developing goggles and virtual worlds and investing in AI platforms, you understand what is at stake.
We are just starting out, and we are firm believers that we all will care about our virtual identities and virtual assets going forward. Not just our kids; also you, us.
Looking at the 3 lenses, it is very clear to us that the virtual economy is an irreversible trend. 📚 This is an excerpt from our book 'The Virtual Economy', discover more and order your copy here.