Weekly News Digest #16

Hi all,

We are finishing our Global Gaming Deals Activity Report Q1’24, which will be released this Thursday. As always, we did our best to prepare the most accurate analysis of the gaming investment market for you, and we look forward to sharing it with you. Stay tuned, and be ready to hear from us soon!

While preparing this digest, we learned that Embracer Group is splitting into three publicly traded companies: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. In our next Weekly Digest, we will delve into the market-changing transaction in more detail. In the meantime, you can find all the deals from last week in the “Notable Transactions” section below.

We want to thank MGVC and Xsolla for supporting this digest.

MERGERS & ACQUISITIONS

Sweden-based games developer Modern Times Group (STO: MTG-B) has acquired US-based PC & Console games developer AutoAttack Games via its subsidiary, Ninja Kiwi. This acquisition will enable Ninja Kiwi and AutoAttack to collaborate on developing tower defense games, aligning with both companies’ focus on the genre. AutoAttack is primarily known for its Legion TD modes and successful transition to Legion TD 2.

VENTURE FINANCING

Norway-based games developer Red Rover Interactive has secured $15m in a Series A round led by Krafton (KRX: 259960), with participation from Tirta Ventures, Overwolf, The Games Fund, Behold Ventures, GEM Capital, Lifelike Capital, Acequia Capital, and other investors. The investment aims to accelerate the development of its debut PvP title, Project Coltrane, the information about which is yet to be disclosed.

US-based web3 games developer Avalon Corp has raised $10m in a funding round led by BITKRAFT Ventures and Hashed, with participation from Coinbase Ventures, Spartan, Foresight Ventures, LiquidX, Momentum6, and other investors. The funds will fuel the development of its debut title, AI-supported UGC MMORPG Avalon, which aims to unite web2 and web3 gaming aspects.

India-based multiplatform games developer LightFury Games has secured $8.5m in Seed funding led by Blume Ventures, with participation from Mixi, Gemba Capital, and other investors. The funds will fuel the development of AAA titles for mobile, with further expansion to other platforms. The company plans to establish game studios in the UK and India.

Sweden-based content management platform Gridly has raised $3.6m (SEK 28m) in a Seed funding round led by Subvenio Invest and Rendered VC. The company offers AI-based content operations solutions, primarily focusing on translation and localization processes. The funding will be used for further development of the platform.

Turkey-based mobile games developer Mage Games has secured $3.5m in a funding round led by Actera, with participation from Ludus Ventures. The investment will be used for the game development process. The company will focus on competitive mobile PvP games.

China-based blockchain game developer Lont Games has raised $2.6m in a Seed funding round from undisclosed investors, with technical support from OKX and Bitget Wallet. The funds will fuel team expansion and accelerate game development under proprietary architecture.

Saudi Arabia-based web3 games developer Astra Nova has raised $1m in a funding round from Hashgraph Ventures, Oxbull, MoonEdge, Vision, Kanga, Spicy Capital, Equinox, BTS Labs, and Sensei Capital. The studio is currently developing its first title, an eponymous web3 RPG. The sum will go towards further development of the game, which will be released in Q3’25.

UAE-based web3 mobile games developer Circle of Games has raised $1m from Nazara Technologies (NSE: NAZARA) and The Hashgraph Association. The funding will fuel the game development process and establish a presence in the US, Europe, the Middle East, Africa, and Asia. The company has a portfolio of 250,000 users worldwide.

FUNDRAISING

US-based VC fund Andreessen Horowitz (a16z) has secured $7.2B, with $600m allocated to its Andreessen Horowitz Games Fund Two. This is the second time a16z has secured funds to invest exclusively in gaming companies. In May’22, a16z raised $600m for its first gaming-focused fund: Games Fund One.

Germany-based private equity firm Auctus Capital Partners and Germany-based software company Remote Control Productions have launched Prestiged, a brand-new investment fund to invest in and acquire European gaming companies. The fund will focus on stable-performing companies with EBIT ranging from $531k to $21.2m. Prestiged is already seeking studios for potential investment opportunities.