Gaming VC fund Konvoy Ventures launched its newest report on the state of funding within the trade. Based on its findings, enterprise capital funding is total up about 1% quarter-over-quarter, however growth-stage funding has elevated. The general variety of offers has additionally gone down QoQ.
Konvoy’s findings present that the video games trade is predicted to be $188 billion market in 2024, and a $223 billion market by 2029. Non-public funding for video games in Q3 2024 totals $811 million, a 15% improve from the earlier quarter. The full quantity of personal funding for three-quarters of the 12 months to date is increased than 2023’s total complete for 4 quarters — nevertheless, that is largely because of Disney’s $1.5 billion funding in Epic Video games.
The full variety of VC offers in gaming was 92 for this quarter, a 14% QoQ lower. Progress-stage funding — funding for Collection B-D — was $262 million, increased than 2023’s common of $159 million. Early-stage funding, however — pre-seed by way of Collection A — is the bottom its been since Q1 2020.
Jason Chapman, Konvoy’s managing associate, advised GamesBeat in an interview, “We’re seeing encouraging signs of normalization in gaming VC funding over the past six quarters, despite macroeconomic challenges. The gaming industry continues to command and demand people’s time, proving its resilience. However, while the volume of AI-related gaming deals have grown, traditional content studios are facing compression in VC funding. Content alone doesn’t seem to be a strong fit for venture capital at this stage.”
Konvoy’s report: AI-based funding
One of many insights from Konvoy’s report is the rise of funding in gaming corporations associated to or referencing AI. 22% of funding for Q3 went to such corporations, or $113 million. That’s up from 10% and $52 million within the earlier quarter. Based on the report, two of the biggest investments in AI corporations occurred in Q3: Volley’s $55 million fundraise and Collection Leisure’s $28 million Collection A funding spherical.
Chapman advised GamesBeat, “We’re seeing strong VC interest in AI-powered gaming startups, particularly those focused on virtual characters that enhance the player experiences. There’s significant funding traction in startups that help game studios produce and edit content faster, especially in areas like art and video creation, which represent a large portion of production costs. These AI-driven tools are streamlining game development and attracting more attention from investors.”
Konvoy’s full Gaming Trade Report contains regional insights and is now accessible on the corporate’s web site.
