GFR Fund to invest $53.5M in games, generative AI, tech and entertainment

Pre-seed investments are the focus, with Fund III also set to bolster prior investees

GFR Fund to invest $53.5M in games, generative AI, tech and entertainment

San Francisco-based venture capital firm GFR Fund has raised a total $53.5 million towards its third tech fund, with this iteration (Fund III) set to support entertainment, consumer technology and gaming.

GFR Fund is known for investing in early-stage companies and particularly focuses on pre-seed investments, empowering concepts to hit the ground running.

Fund III: new and improved

Fund III is expected to invest roughly a third of the $53.5 million into gaming content and technology. A portion of the remaining funds will go towards generative AI companies also, which will likely have a knock-on effect for game development given the tool’s rise to prominence in 2023.

Another 30% of Fund III is to be committed to follow-on investments in companies GFR Fund has previously supported. The first fund was formed back in 2016 and raised $18 million, going on to invest in 23 companies.
Then the GFR Fund II kicked off in 2019, supporting augmented reality and virtual reality companies, esports, blockchain and more with $20 million raised.

The new $53.5 million fund is a huge upgrade in scale, therefore, with more money than the first two funds combined being set aside for promising startups.

General partners Teppei Tsutsui and Yasushi Komori bring a background in finance and the games industry respectively, meaning GFR has a wealth of contacts from across the sectors; the firm frequently provides startups with hands-on support, networking and connecting aspiring teams with top-level talent.

"With Fund III, we’re tripling down on our sweet spot: the future of gaming and entertainment," said Tsutsui. "We believe that first-time founders with an emerging digital native communities mindset are the best-positioned to build the next generation of gaming and entertainment companies."

GFR Fund is backed by big gaming names including Square Enix, Bandai Namco and DeNA. The latter officially established a joint venture with Nintendo this year to research and develop digital services.

News Editor

Aaron is the News Editor at and has an honours degree in Creative Writing.
Having spent far too many hours playing Pokémon, he's now on a quest to be the very best like no one ever putting words in the right order.