What makes investors interested in your game
- Game developers are faced with changing investment approaches, impacting the way games are made and being funded.
- Investors require quality products, proven metrics, GTM plans and an AI vision.
The fast-changing games investment landscape points to more than just dried up capital. Rather, it indicates that publishers and VCs have adopted new strategies, leading to different expectations of the studios and projects they are willing to put their money into.
Cooling enthusiasm is especially notable in terms of early-stage funding and a shift towards technology-heavy tools. These two major trends in games funding, partly arising as a reaction to the surge during 2020 to 2021, have significantly impacted the outlook for developers and studios in the game sector post-pandemic.
This is being experienced both by indie studios and larger developers who might require high eight figure sums to fulfil their ambitious visions.
Show us the numbers
As the overall games ecosystem has matured, dropping growth, especially in the West where legacy IPs like Fortnite and Roblox continue to soak up the majority of players’ time, investors have sobered up.
Games can’t just be fun; they have to be able to last and grow.
Previously, all you needed was a proven reputation, solid game design docs and a vertical slice of gameplay. Now investors are looking for more than passionate ideas, requiring a well-thought-out go-to-market plan and retention data before committing to projects.
Time is another factor valued differently. Many games quickly rise in the ranks, only to see their metrics fall even quicker. Games can’t just be fun; they have to be able to last and grow. Despite demanding more time to develop, games designed for the long-term and with real staying power are now a requirement.
The obvious gamechanger
Of course, there's always plenty of technology innovation in game development; everything from analytics tools, streaming platforms, ad services and UGC. But generative AI is now the game changer. Developers unable to leverage the advantages it provides are likely to struggle to raise sufficient funding.
Inherently, investors in any market look for the next big thing that could disrupt and fundamentally shake up the entire playing field. So it shouldn’t be a surprise that AI-related products have become highly sought after investments.
In terms of games, the spectrum for AI integration is broad. Generative AI enables more subtle applications like player behaviour analysis and automated data processes.
It shouldn’t be a surprise that AI-related products have become highly sought after investments.
On the more transformative end, it drives innovations such as autonomous NPCs, independent game-playing agents, and fully AI-driven in-game economies.
Understanding market trends and what investors are looking for is essential for any entrepreneur. Of course, you need a game with a vision, but don't forget to highlight:
- Realistic growth targets.
- How your game is aligned with a sustainable business model.
- Your go-to-market strategy.
- Potential for fast expansion when you have success.
All this in combination could be what seals your next funding round, ultimately becoming what makes or breaks the practical execution of your ideas.
Gain more essential insight into game investments, market trends, and the impact of AI, at Pocket Gamer Connects Helsinki 2025, October 7th-8th. Tickets are now available - book yours today.