Vgames raises $500m to launch growth financing platform for gaming companies

• The financing model targets gaming and consumer companies scaling internationally.
• The platform aims to fund user acquisition without requiring additional equity fundraising.
• Vgames has invested in more than 50 companies since its launch in 2020.

Israeli investment fund Vgames has raised $500 million to launch a new financing platform aimed at gaming and consumer companies. 

As reported by CalcalisTech, the fund has invested in more than 50 companies and has primarily operated through a traditional equity investment model by acquiring stakes in businesses. 

The new initiative expands its offering by introducing a growth financing model designed to help companies fund user acquisition and expansion without raising additional equity.

Moreover, rather than relying on fixed repayment schedules, the new financing model links repayments to the revenue generated by the user groups financed through the investment, tying the structure directly to company performance.

Growth focus

Vgames said the model reflects how companies' funding needs change over time, with early-stage businesses requiring capital to build products and teams, while more mature firms increasingly need financing to support customer acquisition and growth.

The capital was backed by Phoenix. The fund is also collaborating with General Catalyst to identify and evaluate potential companies using their experience with growth models.

To date, vgames has deployed more than $500m into gaming and consumer companies worldwide and plans to provide more than $500m in additional financing through the new platform in the coming years.

“From day one, we wanted to be much more than an investment fund," said Vgames founder Eitan Reisel. “Our goal was to be the partner of entrepreneurs at every stage, from the initial idea to turning the company into a global leader. 

“As companies mature, their needs change. Through the new financing solution, we enable them to continue growing without giving up ownership in the company and without using equity capital for purposes that can be financed more efficiently.”