Compilation / Mobile Game That Little Thing Zeta
Recently, Konvoy Ventures, a game venture capital institution, pointed out in a report that the total amount of venture capital received by the global game industry in Q1 this year has increased by 94% compared to the fourth quarter of 2023. Meanwhile, a lot of money poured into private gaming companies last quarter, fueled by Disney's $1.5 billion investment in Fortnite developer Epic Games. After bottoming out in the fourth quarter of 2023, the game investment market has recovered to near the level of a year ago, and the number of investment transactions in Q1 is also about the same as in the fourth quarter of 2020.
For comparison, the amount of investment in the gaming industry in the fourth quarter of 2023 fell by a significant 83% year-on-year. Although the investment in the game industry in Q1 this year also fell by 28% compared with the same period last year, the month-on-month growth was significant. Konvoy Ventures noted that this is a sign that the gaming industry may be approaching a turning point.
In the first quarter of 2024, global gaming companies received a total of $594 million in venture capital, up from last year's Q4 figure ($319 million). In the last quarter, 124 game companies received venture capital funding, an increase of 28% sequentially, with notable deals including $110 million for Build A Rocket Boy and $100 million for Second Dinner, developer of the Marvel-themed card game Marvel Snap.
In the gaming industry, the report says, most of the money seems to be flowing back to content development companies. In the first quarter of this year, the total amount of venture capital received by the top 10 publicly disclosed game content companies reached $333 million, more than three times the amount of investment received by the top 10 game technology and platform companies (about $90 million, down 13% quarter-on-quarter).
"There has been a shift in the investment landscape around games. We believe that the worst of the gaming industry's current correction cycle is over. "In 2024 and 2025, venture capital in the gaming industry will return to a healthy pace, with several blockbuster acquisitions and acquisitions, as well as high-profile IPOs, and the industry will continue to grow," Josh Chapman, managing partner at Konvoy Ventures, said in a statement. ”
(Konvoy Ventures believes that in the gaming industry, all of these companies in the picture are likely to seek to go public.)
In the first quarter of this year, there were a total of 40 acquisitions and M&A transactions in the gaming industry, which would be roughly in line with the fourth quarter of 2023 (41) and the same period last year. According to Konvoy Ventures, globally listed gaming companies currently hold about $35 billion in cash and cash equivalents, and are likely to relaunch acquisitions and M&A deals in the future. In addition, tech giants with gaming divisions have $267.2 billion in cash.
The venture capital firm also mentioned that mobile app stores (App Store and Google Play) are facing increasing scrutiny, and that the United States may ban TikTok, a short-form video platform that is one of the key channels for promoting gaming products.