Neon Machine, the Seattle-based studio behind the Web3 shooter game Shrapnel, announced it has secured a $19.5 million investment in two funding rounds.
The most recent round was led by Gala Games, with participation from existing investors Griffin Gaming Partners and Polychain Capital. The investment will fuel game development and support Shrapnel’s upcoming global launch and launch in China – closed access coming later in 2025, followed by open access in early 2026.
Neon Machine now transitions to Gala Games’ ecosystem, celebrated for its vibrant community and commitment to player-driven innovation, the company said.
This announcement comes just months after Neon Machine secured a partnership with China, establishing Shrapnel as the first licensed Web3 game approved for launch on the nation’s Trusted Copyright Chain. This milestone not only opens access to China’s massive gaming market, including real RMB trading and cross-chain bridging, but also demonstrates Neon’s commitment to empowering player-owned economies.
It’s a big turnaround in affairs for Neon Machine, which was founded by longtime game entrepreneur Mark Long. Long got into a legal dispute with investors and ultimately left the company. He ultimately joined Unio as CEO. Neon Machine settled the lawsuit in March 2025.
Xuan Hongliang, director of the National Operation Center of the Trusted Copyright Chain, said in a statement, “We are delighted to announce that Shrapnel has signed a cooperation agreement with Gala Games, a globally leading blockchain platform focused on the gaming sector, to establish a strategic partnership. Together, they will jointly invest in developing a large-scale FPS game targeting over 600 million Chinese gamers. This signing formally marks the beginning of a collaboration between the Gala Games Blockchain Platform and the Trusted Copyright Chain.”
Honglian added, “This initiative will bridge the two major digital ecosystems, providing trusted digital infrastructure and professional services for the authentication, distribution, trading, and protection of digital assets in the global gaming industry.”
At the heart of it all is Shrapnel – a free-to-play, team-based FPS blending tactical objective-based gameplay with digital ownership. Players step into the role of fearless Operators in The Sacrifice Zone, where two teams compete to collect Sigma – a powerful resource from meteor storms that enhances player abilities.
In 27 days of paid Early Access in 2024, Shrapnel players battled each other in over 3.7 million sessions. Dynamic elements include shifting meteor showers, mobile stockpiles, Sigma theft from enemies, fast respawns, and tactical tools like Sigma grenades for area denial.
The funds arrive at an important time for Web3 gaming, with the market projected to grow a lot by 2030. This investment supports Neon Machine’s continued efforts to contribute meaningfully to the growth and innovation of the space. The studio is grateful for this support, which underscores investor confidence in Shrapnel’s mission to connect players through smooth, fun and community-focused gameplay and cross-chain accessibility. Public playtests are set to continue soon, offering players a glimpse into Shrapnel’s evolving world.
“This funding is a testament to the passion and potential of Shrapnel, enabling us to deliver an action-packed FPS experience that empowers true ownership,” said Ken Rosman, CEO of Neon Machine, in a statement. “We’re excited to align with Gala Games’ player-first, community-driven approach as we enter this next phase of growth.”
“Connecting GalaChain to the Trusted Copyright Chain is a milestone for global gaming and for Shrapnel. By leading this investment round in Neon Machine, we are backing Shrapnel’s entry into China’s vast market and its vision of thrilling gameplay with true digital ownership. Every cross‐chain transfer will consume GALA, reinforcing a network built for high performance and strict compliance,” said Eric Schiermeyer, CEO of Gala Games, in a statement.