Weekly News Digest #35

From Mods to Billions: Mapping $9B in UGC Investments

User-generated content has been part of gaming for decades, giving rise to hits such as Counter-Strike, DotA, and PUBG. Only recently has it developed into structured, capital-backed ecosystems. Since 2020, nearly $9B has flowed into creator-driven gaming across 95 investments and 21 M&A transactions, with six deals accounting for 76% of all capital.

Our feature in partnership with GDEV Inc. ($GDEV) covers:

• How platforms such as Roblox, Fortnite Creative, Overwolf, and Mod.io are turning UGC into scalable ecosystems.
• Why funding is heavily concentrated in a small number of late-stage deals.
• Which challenger platforms and infrastructure models are emerging.

UGC has moved from a niche R&D lab to a core growth driver in gaming. While the market is dominated by Roblox and Fortnite, the next breakout could come from ecosystem-native studios, new platforms, or infrastructure around modding.

Read the full feature

MERGERS & ACQUISITIONS

[UPD] France-based gaming holding company Atari (EURONEXT: ALATA) has closed the acquisition of an 82% stake in Sweden-based games publisher and developer Thunderful Group (STO: THUNDR) through a directed share issue valued at $5.3m, following approval by Thunderful’s shareholders. The acquisition comprises 333 million newly issued shares, priced at $0.02 (SEK 0.15) each. Comprehensive research on the transaction is available via the link.

South Korea-based video game developer WeMade (KRX: 112040) has acquired a 25% equity stake in console game developer Studio Rasa for $7.2m (KRW 10B). The funding will be used to expand Studio Rasa’s development team, prototype building, and establish art resources to support production of its debut console title, Project IL, scheduled for release in 2028. WeMade also secured global publishing rights for Project IL and a secondary investment option for the title. The partnership will provide Studio Rasa with support for expanding into the North American and European markets.

France-based gaming holding company Atari (EURONEXT: ALATA) has acquired rights to five intellectual properties from France-based gaming company Ubisoft Entertainment (PAR: UBI) for an undisclosed sum. The deal includes the following IPs: Cold Fear, I Am Alive, Child of Eden, Grow Home, and Grow Up. Atari plans to re-release these titles under its publishing label with possible further development. The transaction continues the company’s IP acquisition chain and follows Atari’s acquisition of Transport Tycoon IP announced in Nov’24.

VENTURE FINANCING

Cayman Islands-based web3 games developer Moonveil Entertainment has secured $5m in an investment round from Unicorn Verse. The funding will support the expansion of Moonveil’s gaming ecosystem and the development of titles, including AstrArk and Bushwhack. Moonveil provides an environment for hosting blockchain game development while also developing its own titles. The company previously raised $9m in a pre-Series A round in Aug’24.

US-based payments solutions company Payment Labs has raised $3.25m in a Seed round led by Aperture Venture Capital, with participation from Capital Eleven and other investors. The funding will be used to scale its compliance-focused platform. Payment Labs offers an API-driven solution for payments, pay-ins, and payouts across sports, esports, and the creator economy. Its clients include Microsoft (NASDAQ: MSFT), SEGA, and X Games.

Gaming accelerator Exel by Merak, backed by Merak Capital, has invested in five MENA-based gaming startups as part of its broader investment program.

• Jordan-based mobile games developer DaFluffs Games received $300k in funding to support team expansion and accelerate development of its debut roguelite title, Dungeon Blast, which is preparing for soft launch.
• Saudi Arabia-based Roblox game developer Superbullet Studios secured $300k in funding to support the marketing of its SuperbulletAI title and the scaling of Roblox title production. The game generated $3.6k in sales from 1,110 users over three weeks during soft launch without marketing support.
• Egypt-based indie game studio FitNot Games, which focuses on Arabic cultural titles, has received funding to accelerate the development of ALI, a story-driven 2D isometric stealth game for PC based on Egyptian folklore, and to support team expansion.
• Saudi Arabia-based fantasy sports platform Copa Fantasy, which has surpassed 100,000 users and hosted more than 250,000 contests within two weeks of launch, also received funding from the program.
• UAE-based game developer Classy Games Studios has raised $300k. The funding will support team expansion, community building, and the development of the studio’s upcoming detective RPG SillySuspects. Its debut game, Orbital, attracted 200,000 players who logged 180,000 hours of playtime.

The deals are more likely part of Exel’s investment in 17 gaming studios announced last week.

UAE-based mobile games studio Sheba Joy has secured $293k in a pre-Seed funding round led by Merak Capital. The investment will support the company’s expansion and relocation in Saudi Arabia. Sheba Joy has developed two mobile titles — Ludo Chat and Town Stars — and plans to release four additional titles in 2025.

Saudi Arabia-based mobile game developer Spoilz has raised an undisclosed amount of strategic funding led by Merak Capital and Impact46, with participation from additional investors. The funding will be used to expand Spoilz’s mobile games development and live ops capabilities, as well as support talent acquisition. Spoilz has developed 16 casual and hypercasual mobile titles. The company also provides B2B and live operations services in the MENA region, including market analysis, UI/UX design, localization, and player engagement solutions. The company previously secured undisclosed funding from Impact46 in Feb’25.

PUBLIC OFFERINGS

Canada-based gaming and entertainment company AlphaGen Intelligence (CSE: AIC) has raised $84k in a non-brokered private placement. The proceeds will be used for general working capital purposes. AlphaGen Intelligence focuses on developing software and platforms for immersive content in the metaverse, augmented reality, and gaming. The company previously raised $195k in May’25.

COMPANY REPORTS