Despite macroeconomic conditions, sluggish consumer engagement, VC and institutional investments in metaverse make up almost half of investor assets with the expectation to increase in the next five years
NEW YORK, January 31, 2023 — The majority of venture capital and institutional investors plan to increase their metaverse investments over the next five years, according to a new survey from KPMG LLP.[1] Although U.S. adults have yet to fully embrace a metaverse lifestyle, over 90% of investors predict the metaverse is the next phase of the internet and envision a future in which it is increasingly utilized for work meetings, trainings and learning experiences.
“If history is our guide, this next phase of the internet is going to evolve in ways we have not anticipated,” said Cliff Justice, U.S. leader of Enterprise Innovation, KPMG. “While broad adoption of the metaverse may be years away, investors are playing the long game with their metaverse strategies.”
It has yet to be seen which metaverse platforms and capabilities will have the most sticking power. Further, much of investor confidence hinges on factors like the prospects of improved interoperability across metaverse platforms, broader workplace adoption and more affordable hardware options.
Regardless, more than half of investors surveyed see a benefit in early investment, particularly venture capitalists (63%), as technologies and experiences continue to evolve. Investors also see a great deal of benefit in early investment. About one-third (36%) of investors say they have missed windfall opportunities from not investing or investing too little in metaverse technologies.
Client demand is driving institutional investors and venture capitalists to look past current economic factors and consumer adoption rates,” said Anu Puvvada, KPMG U.S. Studio Leader and Metaverse Center of Excellence Leader. "We’re confident in the metaverse's potential to transform the way we work and how we engage with each other."
For half of the investors surveyed, a single metaverse investment averages between $1M-$9.9 million. Overall, 70% of investors expect the size of individual investments to increase in the long-term.
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As part of its strategic innovation roadmap, KPMG in the U.S. partnered with KPMG in Canada to launch its metaverse collaboration hub where employees, clients and communities can connect and engage. The firm has formed a dedicated team to help clients develop and execute their own metaverse strategies. Visit the KPMG metaverse page to learn about the firm’s consulting capabilities. Click here to read the full KPMG metaverse investor report.
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