South Korean social media platform LINE NEXT has closed a $140 million funding round led by Crescendo Equity Partners, a private equity firm backed by Peter Thiel. Dubbed Asia’s largest Web3 investment in 2023, this funding round marks a major step forward for LINE NEXT’s Web3 ambitions.

The company has clear plans to use this capital infusion to expand its global footprint and boost the adoption of Web3 technology, particularly in Southeast Asia. LINE NEXT's push into the Web3 space is marked by several exciting initiatives, including the development of an NFT marketplace, an AI character social application, and a suite of Web3 games.

One of LINE NEXT’s standout initiatives is the launch of a digital marketplace for non-fungible tokens (NFTs) called DOSI. DOSI is expected to launch in early 2024 as a mobile app that will enable users to buy and sell digital collectibles globally. This move is in line with the growing interest and popularity of NFTs in the Web3 ecosystem.

Facilitate communication with AI roles

In addition to the NFT market, LINE NEXT is also exploring the development of a social application designed to facilitate communication between artificial intelligence characters. This innovative concept can provide users with a unique and immersive way to interact with artificial intelligence entities, thus extending the boundaries of social networks within the Web3 realm.

Recognizing the growing demand for Web3-based gaming experiences, LINE NEXT has unveiled plans to release a suite of Web3 games. Designed to appeal to a wider audience, these games leverage the appeal of Web3 technology to create immersive and interactive gaming experiences.

Empowering businesses with Web3 solutions

LINE NEXT is also designed to provide Web3 solutions for businesses looking to provide customers with full ownership of their digital products. The company plans to achieve this by leveraging the public distributed ledger Finschia as the base layer for these solutions. This approach is consistent with the broader Web3 movement's emphasis on decentralization and user empowerment.

LINE NEXT CEO Youngsu Ko expressed enthusiasm for the round and the company’s Web3 endeavors. He stressed the importance of access to this funding, especially as the global investment environment continues to contract. "We plan to use this opportunity to further popularize Web3 and develop a new service ecosystem that allows users to own the value of their own digital goods," Ko said.

Web3 Financing Status

The overall landscape of Web3 funding is experiencing volatility, with overall funding declining recently. One trend worth noting, however, is the increasing investment in Metaverse-related initiatives. Metaverse investments grew 44% in 2023, compared to 27% in 2022, indicating growing interest in virtual spaces and digital experiences.

While some entities have scaled back their Web3 funding expectations, choosing to diversify into AI, others remain committed to supporting emerging Web3 and AI startups with a focus on profitability and long-term sustainability. For example, SBI’s recent $600 million fund aims to invest in Web3 and AI startups, emphasizing the importance of building sustainable and profitable businesses in these technologies.

In summary, LINE NEXT’s successful $140 million financing, led by Crescendo Equity Partners, marks an important milestone in the company’s journey into the Web3 ecosystem. LINE NEXT plans to launch a DOSI NFT market, launch an AI character social application, and provide Web3 games, and is expected to play an important role in shaping the future of digital experience and interaction in the Web3 era. The funding highlights growing interest in Web3 technology, even as the broader investment landscape changes.