Games funding could be bouncing back if the latest figures are any indication as to future trends.
Funding to gaming companies has seen a boost this year with $265 million invested globally in early-stage rounds in Q1. This represents a 65% increase from Q4 2023 and a fourfold rise from Q3, which represented a multiyear low for gaming investment.
The figures come via Crunchbase data which also shows that global video game revenue hit over $400 billion in 2023 and is expected to exceed $450 billion in 2024.
With nearly two billion mobile gamers worldwide, Andreessen Horowitz recently raised $600 million for a gaming-focused fund as part of a larger $7.2 billion fundraise, while Bitkraft Ventures secured $275 million for its third fund.
Where's the money going?
Investors have supported two nine-figure rounds for gaming startups this year. Edinburgh-based Build A Rocket Boy raised over $110 million in Series D funding for its immersive gaming platform, high-end game series, and design tools.
Meanwhile Irvine-based Second Dinner Studios secured $100 million in Series B funding following the success of Marvel Snap, which has been downloaded over 22 million times since its 2022 launch.
Konvoy Ventures' managing partner Josh Chapman commented to Crunchbase, “I think the industry has bottomed out from a funding perspective, and we’re now coming back to a pre-Covid norm."
Indie developers on the rise
Chapman believes that indie game developers are thriving, with five of Steam's top 10 highest-grossing titles in 2024 coming from indie studios. Indies traditionally benefit from more accessible developer tools, emphasizing creative talent over technical skills which can give them the edge.
Crunchbase's data also finds that the gaming industry has several potential IPO candidates, including Epic Games and Valve, alongside newer contenders like Discord and Niantic. Also, significant startup acquisitions are now once more likely, given recent big ticket purchases such as Microsoft's acquisition of Activision Blizzard for $69 billion are beginning to bear fruit.
