Weekly News Digest #44

Untold Stories of ex-Activision Blizzard King’s Founders

A couple of months ago, we set out to research the advantages ex-Riot employees have when securing investments. It turns out that ex-Riot founders typically secure larger average deal sizes and are more likely to close follow-up funding rounds compared to the broader industry. Check out the full study in case you’ve missed it.

We’re incredibly grateful for all the valuable feedback you shared. Not only did it help us refine our methodology, but it also highlighted just how relevant this topic is! So, we’re excited to expand this research into a series. In our upcoming $GDEV x InvestGame feature, we’re focusing on another industry powerhouse: Activision Blizzard, which also includes the mobile gaming giant King.

The article will be available tomorrow on our website, but you can already read it on Deconstructor of Fun.

If you’re interested in details, our team has prepared a table with all the deals by ex-ATVI founders used in this research, available exclusively for their Patreon subscribers!

We thank MY.GAMES and Xsolla for supporting this digest.

VENTURE FINANCING

Israel-based AI gaming company Decart has secured $21m in a funding round from Sequoia and angel investors. The company is developing a browser game called Oasis, built on a generative AI “world model” with a Minecraft-like foundation. Decart focuses on gameplay in which the game world reacts to players’ actions in real time via AI rather than through pre-programmed responses. The company plans to transition its AI model from NVIDIA AI chips to Etched AI chips, to which it has been adapted.

Singapore-based web3 games developer and esports company 81Ravens has secured $4.5m in a funding round led by Digital Hearts Holdings and Gree Ventures. The funds will support developing and launching the company’s PC title, Paravox, on the Solana blockchain. Currently in open alpha testing with 100,000 registered accounts, the game is planned for a full launch on Steam by the end of 2024.

Canada-based games developer Wolf Haus Games has secured $2.9m in a funding round from Krafton (KRX: 259960) and Lifelike Capital. The funds will support the development of the company’s debut title. Founded by filmmaker Joe Dietsch, the studio is currently developing an original survival game IP using Unreal Engine 5.

Sweden-based esports platform Challengermode has secured $2.5m (SEK 27m) from Back in Black Capital, Ballista Capital, and Seeker. The funds will support the company’s expansion beyond esports, including offering services for developers and AAA publishers. Recently, the company entered into agreements with an undisclosed publisher. The platform allows users to host esports tournaments and has organized 400,000 competitions from 2023 to 2024, achieving a 58% growth in revenue.

UK-based tech company Levellr has secured $1.75m in a funding round from Fuel Ventures, Colopl Next, LFG Holdings, and various angel investors. LFG Holdings head Dylan Collins will join the company’s board as part of the round. Levellr provides community management and insights tools for the B2B sector.

UK-based mobile games developer Maintain Altitude has secured $500k in a pre-Seed funding round led by Hiro Capital, with participation from an angel investor. The funds will support the development of the company’s debut title, Beat Hunter, a mobile music game. The game is scheduled for a soft launch in Aug’25 and a full release in 2026.

Sweden-based VR gaming company Cross Reality has secured $327k (SEK 3.4 million) from its current investors. The funds will support the company’s expansion. Cross Reality utilizes its proprietary CRES VR technology as a multiplayer solution — a full-service wireless VR technology with multiplayer capabilities in small spaces — and has developed nine original titles.

US-based PC & Console games developer Magic Potion Games has secured an undisclosed sum in a pre-Seed funding round led by Konvoy Ventures, with participation from 1AM Gaming, 1Up Ventures, GFR Fund, Wheelhouse Venture, and Goodwater Capital. Founded by Club Penguin developers and Epic Games and EA veterans, the company is currently developing Imagine Island, a title aimed at a kids’ audience.

Germany-based AAA gaming studio Gunzilla Games has secured undisclosed funding from VanEck. company has recently launched in early access its first PC & Console title, Off the Grid, featuring a blockchain-based marketplace for players to trade in-game items. This investment marks VanEck’s second funding as part of its liquid token strategy, following its investment in Parallel in Mar’24.

Spain-based games developer Penguin Armada has secured an undisclosed sum in a funding round from Supercell. The company is currently developing a top-down 3v3 multiplayer title for PC. Penguin Armada was founded by Gerard Fernandez, the former founder of Omnidrome, a studio acquired by Scopely in Feb’22.

FUNDRAISING

Germany’s Minister of State for Culture and the Media has launched the Press Start: Games Startup Grant fund. The program will support up to 130 newly founded or existing indie studios with $3k (€2.75k) monthly for 18 months, along with educational services and networking opportunities. The fund will accept applications until 17th November, 2024.