Study: Metaverse-related investments to reach $120B in 2022
The amount of investment being poured into the metaverse has already reached $120 billion through the first half of 2022, according to a new report from consulting firm McKinsey & Company.
Why it matters: The metaverse has yet to be truly defined, but that has not stopped the money flow. It will be a few years before we know whether this was a smart bet on the future or throwing cash into a digital black hole.
- Even McKinsey had trouble defining it: "The metaverse seems to be whatever people's imaginations dream it to be. But today the metaverse remains difficult to define."
- For the purposes of this report, McKinsey defined the metaverse as "the next iteration of the internet that seamlessly combines our digital and physical lives."
The big picture: Total spending on the metaverse could reach $5 trillion in 2030 — that would be the size of Japan's economy.
By the numbers: The amount of metaverse-related investment from VC and private equity firms is on pace to double last year, with as much as $8 billion through the first five months of 2022.
- M&A activity, which makes up the lion's share of investment, has already doubled 2021.
- Internal corporate investment was between $15-$20 billion so far this year.