Unlocking the Metaverse: Improbable's Strategic Pivot After Slashing Losses by 85%
In a remarkable strategic shift, Improbable, the London-based metaverse pioneer, has set its sights on a bold new horizon after a monumental achievement: reducing its losses by a staggering 85%. This impressive turnaround, as reported on Tuesday, Sep. 26, has sparked a fresh direction for the company, as it transitions from a focus on virtual experiences for video games and defense into the realm of "venture building."
Throughout 2022, Improbable executed a remarkable feat, trimming its losses from £131 million (
$159 million) to a mere £19 million ($23 million). Notably, during this same period, the company's revenue skyrocketed by an astonishing 2.6 times, reaching £78 million (~$95 million).
"The focus is now on industrializing what we are doing by being involved in more events with more people where there is scope to drive and monetize engagement levels," proclaimed Dan Odell, Improbable's CFO.
However, the journey to this transformative point was not without its challenges. In a bid to curb losses, Improbable reportedly reduced its workforce by more than 10% in 2022. A spokesperson for the company at that time attributed this move to the macroeconomic environment, citing the need to expedite the path to profitability for their defense business.
Herman Narula, the visionary founder of Improbable, had previously set an ambitious goal, foreseeing profitability for the company in 2023. Founded in 2012, Improbable had charted an impressive course, raising an astounding $704 million in seven funding rounds, with backing from 13 prominent investors including Softbank, Elrond, and Valour, as per Crunchbase data.
Improbable's remarkable transformation serves as a testament to the metaverse's boundless potential and the r esilience of those who dare to explore uncharted territories. As they pivot towards becoming a "venture builder," the world watches with bated breath to witness how Improbable continues to shape the landscape of metaversal experiences, bridging the gap between imagination and reality.