Weekly News Digest #25

Hi all,

The market continues to be quite modest in terms of the investment and M&A activity, which is why it’s been quite a while since we featured a proper deal analysis. As always, you can learn about the deals of the previous week in the “Notable Transactions” section below.

We want to thank MGVC and The Games Fund for supporting this digest.

VENTURE FINANCING

UK-based mobile dress-up games developer Drest has raised $19m (£15m) from its co-founder and co-chair, Graham Edwards. The proceeds will be used to finance the development of Drest 2.0, which is a new “metaverse-enabled version” of its mobile title. Considering the latest hiring news from the studio, we are likely to see a web3 expansion of the IP.

Norway-based PC & Console game developer Red Rover has raised $5m in a Seed funding round from The Games Fund, GEM Capital, Behold Ventures, Lifelike Capital, Acequia Capital, and others. Founded by industry veterans who worked on such titles as Conan Exiles, DayZ, Dune Awakening, and Crysis 2, Red Rover will develop a multiplayer survival game, which is yet to be announced.

Turkey-based mobile game studio Fuse Games has secured a $2m investment in a funding round led by NFX and Lakestar. The studio is primarily known as a developer of a multiplayer battle royal game Poggies Unleashed. Part of the funding will be used to incorporate artificial intelligence into the studios’ shooter titles.

Senegal-based mobile games developer Masseka and the French Embassy in Senegal have invested ~$330k (€300k) to establish a new gaming hub in Senegal. The hub will include both an incubator and a development studio to boost the gaming industry in West Africa and train Senegalese game developers. Game studio Kayfo Games is also said to join the project, as well as Senegal governmental organization DER F/J.

Swedish group Aonic has invested an undisclosed sum in US-based game studio OtherSide Entertainment led by Warren Spector, who is known for pioneering immersive sim games like System Shock and Deus Ex. The investment, combined with a strategic partnership, will support the development of new original games. Today, the company doesn’t possess any rights for System Shock IP and has only original titles in its pipeline.

Newly-established US-based game studio Sword & Wand has raised an undisclosed sum in a Seed funding round, led by Galaxy Interactive, with participation from Dreamhaven, KRAFTON and 1Up Ventures. Sword & Wand is creating their first unannounced fantasy co-op multiplayer title.

US-based Web3 gaming studio PawFury has secured a strategic investment from Digital Ventures Group (DVG). PawFury is a meme cryptocurrency P2E gaming platform. The funding will aid PawFury’s global expansion with DVG’s expertise in P2E management and digital asset growth.