Weekly News Digest #30
# of announced deals
12
announced deals’ size
$109m
# of closed deals
12
Is There A Shift From Content To Tech Startups Among Gaming VCs?
The growing popularity of platform enablers like Roblox, Fortnite, and Discord, coupled with advancements in the tech sector (AI), is gathering significant attention from investors. Recent rounds led by gaming-focused VCs in such startups as k-ID, Suno AI, Luma, or Kaedim suggest a potential shift in VC focus from gaming content creators and publishers to technology-driven and platform-oriented startups (Platform & Tech) operating in the video game sector.
This shift raises an intriguing hypothesis: are VCs increasingly investing in Platform & Tech startups rather than traditional game development studios today, or is this just a publicity-driven distortion? We’ve been tracking industry deals for over four years and can contribute to this discussion.
For a quick overview, refer to our PDF featuring the essential data points from this article:
GDEV x InvestGame – Feature #1.
For the full read, visit our website.
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MERGERS & ACQUISITIONS
US-based multiplatform games developer Warner Bros. Games has acquired US-based PC & Console games developer Player First Games for an undisclosed sum. The studio, famous for developing the F2P fighting game Multiversus, will continue to operate with the same management team.
UK-based esports organization GIANTX has acquired UK-based AI gaming company iTero for an undisclosed sum. iTero develops an AI-based gaming coach for the League of Legends game. As a result of the deal, the founder of iTero has joined GIANTX as its Head of Gaming Technology.
VENTURE FINANCING
Luxembourg-based AI tech company Gcore has raised $60m in a Series A funding round led by Wargaming, with participation from Constructor Capital and Han River Partners. The funds will fuel the development of the company’s AI platform, including Nvidia GPU servers. This investment is the first for the company since its launch in 2014.
Web3 tech company NPC Labs has raised $18m in a Seed funding round led by Pantera Capital, with participation from Makers Fund, Hashed, Collab+Currency, Sfermion, Mirana Ventures, Bitscale Capital, and Mantle EcoFund. The company’s total funding is now $21m. NPC Labs provides scaling opportunities for web3 gaming companies based on its developed ecosystem, B3.fun.
Cyprus-based mobile data analytics agency AppMagic has secured a total of $3m in a Series A funding round. GEM Capital provided $2.5m, and Vibranium provided $500k. The funds will support the development of the company’s research platform with new features, such as new data collection and a new regional sales presence in the US, South Korea, Japan, and China. The initial $200k Seed round happened in 2020.
US-based UGC gaming studio Look North World has secured an additional $2.25m in a Seed funding round led by London Venture Partners, with participation from Bandai Namco Entertainment 021 Fund, Overwolf, Crush Ventures, Hasbro (NASDAQ: HAS), PixCapital, and other investors. This funding round brings the total Seed round to $4.5m. The funds will fuel the development of new games in Fortnite and other UGC platforms. This round also highlights the strategic partnership between the company and Bandai Namco, as Look North World will create content inside Fortnite for Bandai Namco’s new game.
According to the SEC, Ireland-based tech company W4 Games has raised $350k in a funding round from undisclosed investors.
US-based games developer Gray Wolves has secured $1m in a pre-Seed funding round from undisclosed investors. The funds will support corporate development of the company, such as team material support. The company focuses on establishing a worker-oriented approach in the game industry.
India-based mobile games development studio Mayhem Studios has secured undisclosed funding from Lumikai. The funds will fuel team improvement and the development of the Battle Royale title Underworld Gang Wars. The studio, a subsidiary of the Mobile Premier League, previously secured $20m in a Series A in Apr’24.
PUBLIC OFFERINGS
Sweden-based esports organization Ninjas in Pyjamas Group (NASDAQ: NIPG) has raised $20m in its IPO. The public offering launched on the NASDAQ stock exchange. The price per share of the company was in the range of $9 to $11.
US-based multiplatform games developer Motorsport Games (NASDAQ: MSGM) has entered into definitive agreements to raise $1m via the issuance of common stock. The company will issue a total of 460 830 common shares priced at $2.17 per share. The closing of the offering is expected to occur on July 29, 2024.
FUNDRAISING
Gaming advisory firm Agora Gaming Partners has secured $600k from angel investors. The funds will be used to launch advisory services for publishing companies focusing on the PC and console market and provide M&A advisory services for firms valued up to $100m.
