AI Accelerator Zeroth Secures Over $3 Million Investment from Animoca Brands

Asia-based accelerator program Zeroth has announced a significant capital infusion, with digital media company Animoca Brands agreeing to invest over $3 million into its operations and fund. This strategic partnership aims to bolster Zeroth's position as a leading accelerator for AI and machine learning startups in Asia.

Key Investment Details:

Total Investment: Over $3 million.
Previous Investment: Animoca Brands had previously invested $1 million (A$1.39 million) in Zeroth in December.
New Investment Breakdown:
- Up to $1.08 million (A$1.5 million) for a 67% stake in Zeroth's operational business, Venture Classic Limited.
- A $2 million commitment to Zeroth's fund as a Limited Partner (LP).

Zeroth's Role and Focus:

Zeroth, founded 18 months prior to the announcement, focuses on identifying and nurturing top AI and machine learning startups across Asia. The program has successfully graduated 33 companies from three batches, typically taking an average of 6% equity. Notable alumni include Fano Labs (now Accosys), which raised funds from Horizons Ventures, and Japan's Laboratik. OliveX, a health and fitness spinout from Animoca Brands, also graduated from Zeroth before securing its own funding.

Animoca Brands' Strategic Alignment:

Animoca Brands, listed on the ASX and known for its mobile games, is actively expanding its focus into artificial intelligence and blockchain. The company views Zeroth as a strategic partner that provides invaluable resources and access to high-potential ventures and technologies in the rapidly growing Asian tech landscape.

"We were impressed by Zeroth’s rise to one of the most influential AI accelerators in Asia as well as a major investor in blockchain," said Yat Siu, co-founder and chairman of Animoca Brands. "As Animoca Brands continues to expand its AI and blockchain initiatives, Zeroth provides us with an excellent strategic match, invaluable resources, and access to high-potential ventures and technologies."

Deal Structure and Independence:

Zeroth founder Tak Lo clarified that the deal is not an acquisition but rather a significant addition of capital and expertise. Zeroth will continue to operate independently, with plans to expand its scope and geographical focus. The Zeroth fund remains wholly owned by its management.

Future Outlook:

With this new capital and strategic backing from Animoca Brands, Zeroth is well-positioned to enhance its support for emerging AI and ML startups. The program is also in discussions with other prospective LPs to further balance its capital structure and expand its investment capacity.

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AI Accelerator Zeroth Secures Over $3 Million Investment from Animoca Brands