Gaming Industry Report Q2 2024

Jul, 2024 Gaming Industry Report
Q2 2024
1

Gaming industry: at a glance
• 2024 market size: $189.3b (+2.9% YoY)
• Public markets: leading public gaming
ETFs up 7-20 % YTD (vs S&P 500 = 15.1%)
• Venture funding in Q2‘ 24: $492m across
104 rounds (funding is -20% QoQ, number
of rounds are -22% QoQ)
Total gamers in 2023 by region (millions):
Source: CB Insights, Newzoo, public reporting, Drake Star
Key Trends
• YouTube ,LinkedIn introduce game strategy
• Introducing the Olympic Esports Games
• Epic Games Store, Fortnite coming to iOS in
EU and Japan
• Apple to potentially face $1b in daily fines
• Voodoo acquires BeReal (€500m)
• TikTok faces a ban in the US
2
1,789
(53% )Asia -Pacific
237
(7% )
North America
335
(10% )
Latin America
447
(13% ) Europe
574
(17% )
Middle East & Africa
3,381m

Gaming is expected to be a $189b market in 2024
$20 $22 $32
$55 $60
$68 $77
$122 $138
$180 $183 $189 $196
$217
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
$220
$240
2003 2005 2007 2011 2013 2015 2017 2009 2021 2024 2029 2019
$23 $26 $28
$42 $64
2001
$85 $93 $107
$152
$71
$184
$203 $210
$225
$166
+3.5%
Source: IFPI, Newzoo, Arstechnica, MPAA, Mordor Intelligence, Konvoy
Actual Projected $ in billions
3

Gaming funding: private markets overview
4
1: Includes transactions such as Private Equity, Growth Equity, Corporate Minorities, PIPEs, and others. This excludes M&A; 2 : V C includes Pre -Seed through Series K VC; Note 1: Historical data across reports is subject to change, as source adds new deals as they become pub lic; Source: CB Insights
$ in millions
Q2 -20 Q3 -20 Q4 -20 Q1 -21 Q2 -21 Q3 -21 Q4 -21 Q1 -22 Q2 -22 Q3 -22 Q4 -22 Q1 -23 Q2 -23 Q3 -23 Q4 -23 Q1 -24
$1,057
Q1 -20
$3,092
$1,560
$2,696 $3,128
$4,038
$5,015 $4,443
$7,147
$2,069
$1,321 $930 $599 $778 $491
$2,196
Q2 -24
$690
$1,306
2020: $7,015
Other Transactions 1 VC 2
Private market funding in gaming YTD has already surpassed that of all of 2023
2021: $14,876 2022: $14,979 2023: $2,799 2024: $2,886
$1.5b of $1.6b in Other Transactions 1for Q1 -24 attributed to Disney <> Epic

Gaming VC funding: $492m ( – 20% QoQ) in Q2 – 24
5
Note 1: Early = Pre -Seed through Series A, Growth = Series B through D, Late = Series E+ VC; Note 2: Historical data across repo rts is subject to change, as source adds new deals as they become public; Source: CB Insights
$ in millions
Q2 -20 Q3 -20 Q4 -20 Q1 -21 Q2 -21 Q3 -21 Q4 -21 Q1 -22 Q2 -22 Q3 -22 Q4 -22 Q1 -23 Q2 -23 Q3 -23 Q4 -23 Q1 -24
$550
Q1 -20
$780
$1,071
$1,983
$1,621
$3,013
$3,387
$2,952
$1,656 $1,419
$883 $831
$529 $565 $332 $601
Q2 -24
$492 $418
Unattributed VC Late Growth Early
Early -stage funding hits 12 -month high, yet growth and late -stage are very depressed
2020: $2,819 2021: $10,005 2022: $6,910 2023: $2,256 2024: $1,093

Gaming VC deals: 104 ( – 22% QoQ) in Q2 – 24
6
# of deals
83 78 95 102 127 121 123
219 253
178 139 130 132 108 96 89 120 93
17
22 17 22
27
23
16
7 2 3
1
3 5 7
9 3 8
10
9 6
1 12 2
Q4 -20 Q1 -21
0
Q2 -21 Q3 -21
12
Q3 -20 Q4 -21
0
Q1 -22
8
Q2 -22
0
Q3 -22
8 0
Q4 -22
0 8
Q1 -23
12
0 9
Q2 -23
47
Q3 -23
5 11
Q4 -23
5 9
Q1 -24
97 93 112 128
160 141
10
259
286
202
160 145 146
118 107 105
156
Q2 -24
104
2 9
Q1 -20
6 8
Q2 -20
0
134
Unattributed VC Late Growth Early
Growth and late -stage deal activity lags despite consistent early -stage dealmaking
Note 1: Early = Pre -Seed through Series A, Growth = Series B through D, Late = Series E+ VC; Note 2: Historical data across repo rts is subject to change, as source adds new deals as they become public; Source: CB Insights
2020: 430 2021: 716 2022: 793 2023: 476 2024: 238

Gaming VC: a healthier funding environment
7
A higher proportion of deals are making up 80% of VC funding in gaming
Note 1: Early = Pre -Seed through Series A, Growth = Series B through D, Late = Series E+ VC; Note 2: Historical data across repo rts is subject to change, as source adds new deals as they become public; Source: CB Insights
13% 12%
19%
22% 22%
0%
5%
10%
15%
20%
25%
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
2020 2021 2022 2023 2024 YTD
$2,819
$10,005
$6,910
$2,256
$1,093
% of deals that make up 80% of funding Unattributed VC Late Growth Early
$ in millions % of deals 22% of deals have made up 80% of disclosed
funding, signaling a well -distributed and
healthier investment environment

Gaming VC: Primarily being driven by early – stage
8
~90% or more of funding 1has been invested into early -stage deals since Q4 -22
1: Q4 -23 was an outlier to this trend; Note 1: Early = Pre -Seed through Series A; Note 2: Historical data across reports is subj ect to change, as source adds new deals as they become public; Source: CB Insights
83 78 95 102 127 121 123
219
178
139 130 132 108 96 89
120
93
86% 84% 85% 80% 79% 86% 79% 85%
88%
88% 87% 90% 90% 92% 90% 85% 90% 89%
0%
20%
40%
60%
80%
100%
0
50
100
150
200
250
300
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
253
% of VC deals that are early -stage # of early -stage VC deals
# of deals % of deals
2020 2021 2022 2023 2024

Gaming in the public markets
Stock performance of gaming ETFs, % change from January 2020
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2021 2020 2022 2023 2024
Source: Public reporting as of June 1, 2024; Note: ESPO seeks to track the MVIS Global Video Gaming and eSports Index (MVESPOTR), HERO seeks to track a modified market -cap -weighted global index of companies in video games and esports industry
ESPO HERO S&P500
ESPO has outperformed the S&P 500 YTD but both have similar performance YoY
9
YTD Performance (6/1):
• ESPO: 19.7%
• HERO: 7.1%
• S&P 500: 15.1%

Public gaming companies hold $33b in cash
and equivalents; a healthy M&A environment
Gaming companies Tech companies with gaming divisions
Company Cash & equivalents 2(USD)
$6.0b
$5.7b
$2.5b
$2.5b
$2.4b
$2.1b
$1.8b
Others 1 $10.6b
Total $33.4b
Company Cash & equivalents 2(USD)
$72.9b
$32.7b
$32.3b
$24.5b
$22.3b
$19.6b
$12.6b
$7.0b
Total $223.9b
1: Nexon, Square Enix, Sega, Ubisoft, Unity, Playtika , Roblox, TTWO, Applovin , Embracer, NCSoft ; 2: Does not include short -term investments; Source: Latest public reporting (March 31, 2024) and converted to based on historical exchange rate on that day
10

Gaming M&A: 25 transactions in Q2 – 24
11
29 24
44 50 56 60
72 67 71
52
45
35 41
30 26
44 41
25
Q1 -20 Q2 -20 Q3 -20 Q4 -20 Q1 -21 Q2 -21 Q3 -21 Q4 -21 Q1 -22 Q2 -22 Q3 -22 Q4 -22 Q1 -23 Q2 -23 Q3 -23 Q4 -23 Q1 -24 Q2 -24
Gaming M&A is down 17% YoY
Note 1: Deals are not included in the private markets overview or the debt financing overview; Note 2: Deal transaction value s a re predominantly not disclosed; Note 3: Does not include BeReal’s acquisition of Voodoo ($500m) or Sensor Tower’s acquisition of data.ai; Note 4: Historical data across reports is subject to change, as source adds new deals as they become public; Source: CB Insights
2020: 147 2021: 255 2022: 203 2023: 141 2024: 66

Largest gaming tech & platform VC deals
Gaming tech & platform investments –Q2 2024
Source: CB Insights
12
Stage Raise, $m Region Company name
Series A $12.0 North America Sonic
Seed $12.0 North America Astrocade
Series A $10.0 Asia Carv
Series A $8.2 North America Quintar
Seed $6.0 Asia Star Nest
Seed $4.3 Asia Play AI
Seed $4.0 North America Trala’s Lab
Seed $3.7 Europe DeGaming
Series A $45.0 Asia k-ID
Comments:
• 9 of the top 10 T&P
deals were into
companies in Asia or
NA
• The funding for the
top 10 T&P deals
totaled $245.2m
(+174% QoQ)
• 5 of the top 10 T&P
deals ($165.7m) are
into web3 -related
companies
• 2 of the top 10 T&P
deals ($16.3m in
funding) are into AI –
related companies
Series A $140.0 Asia Zentry

Largest game content VC deals
Game content investments –Q2 2024
Source: CB Insights
13
Stage Raise, $m Region Company name Comments:
• The top 10 Content
deals totaled $117.6m
(-63% QoQ), however,
Q1 had two large
outliers ($210m); the
funding for the top 10
content deals in Q2
2024 was the same
as that of Q4 2023
• 5 of the top 10
Content deals ($50m)
were into web3 –
related studios
Series A $25.0 Europe Bespoke Pixel
Seed $12.0 Asia The Seeds
Seed $10.0 North America Avalon
Series A $10.0 Asia Gomble Games
Unattributed VC $10.0 North America BORED SLOT
Series A $10.0 North America Redacted
Seed $9.1 Europe New Tales
Seed $8.5 Asia LightFury Games
Series A $15.0 Europe Red Rover Interactive
Series A $8.0 North America InfiniGods

Regional Breakdown 14

Gaming deals globally: at a glance
Note 1: Early = Pre -Seed through Series A, Growth = Series B through D, Late = Series E+ VC; Note 2: Some funding amounts may no t be disclosed in source data; Source: CB Insights
Gaming venture funding in Q2 2024, $m
36
30
24
2
2
3
5
Asia North America Europe Africa Australia South America
39
33
29
2 1 0
0
1
1
0
Number of gaming venture deals in Q2 2024
$283
$116
$78
$13
0
50
100
150
200
250
300
Asia North America Europe Africa Australia South America
$283
$128
$78
$2 $0 $0 $2 $0
15
Late Early Growth Unattributed VC

Asia: Q2 funding hits 12 – month high
Note: Early = Pre -Seed through Series A, Growth = Series B through D, Late = Series E+ VC; Source: CB Insights
16
Late Early Growth Unattributed VC
Largest VC deals in Q2
$45.0m k-ID
$140.0m Zentry
Size Company
$12.0m The Seeds
$10.0m Carv
$10.0m Gomble Games
$8.5m LightFury Games
$6.0m Star Nest
$4.3m Play AI
Gaming venture funding from Q1 2020 through Q2 2024, $m
# of gaming venture deals from Q1 2020 through Q2 2024
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
$62
Q1
$165 $231 $531 $477 $517 $718
$1,318
$591 $488 $345 $380 $227 $202 $103 $100
Q2
$283 $73
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
28
Q1
42 44 66 52 60
93 111
75 60 57 48 44 44 49 57
Q2
39 27
‘20: $532 ‘21: $2,244 ‘22: $2,742 ‘23: $912 ‘24: $383
‘20: 141 ‘21: 271 ‘22: 303 ‘23: 185 ‘24: 96

NA: 61% decrease in funding QoQ
17
Late Early Growth Unattributed VC
Note: Early = Pre -Seed through Series A, Growth = Series B through D, Late = Series E+ VC; Source: CB Insights
Largest VC deals in Q2
$12.0m Astrocade
$12.0m Sonic
Size Company
$10.0m Avalon
$10.0m BORED SLOT
$10.0m Redacted
$8.2m Quintar
$8.0m InfiniGods
$4.0m Trala’s Lab
Gaming venture funding from Q1 2020 through Q2 2024, $m
# of gaming venture deals from Q1 2020 through Q2 2024
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1
$293 $352 $668
$1,244 $765
$1,539 $2,011
$843 $719 $589 $328 $302 $188 $274 $152 $329 $128 $456
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1
41 35 42 47 52 58
94 93 71 57 60 64 43 41 37 51 33 41
‘20: $1,769 ‘21: $5,599 ‘22: $2,479 ‘23: $915 ‘24: $457
‘20: 159 ‘21: 251 ‘22: 281 ‘23: 185 ‘24: 84

Europe: Funding – 51%, deal count +32% QoQ
18
Note: Early = Pre -Seed through Series A, Growth = Series B through D, Late = Series E+ VC; Source: CB Insights
Late Early Growth Unattributed VC Early Growth
Largest VC deals in Q2
$15.0m Red Rover
Interactive
$25.0m Bespoke Pixel
Size Company
$9.1m New Tales
$3.7m DeGaming
# of gaming venture deals from Q1 2020 through Q2 2024
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1
$49 $142 $165 $201 $371
$890
$608 $492 $305 $324 $210 $110 $106 $59 $77 $160 $78 $30
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1
23 32 37 42 34 33
58 65
47 36 27 28 28 20 16 22 29 26
‘20: $386 ‘21: $2,070 ‘22: $1,331 ‘23: $352 ‘24: $238
‘20: 118 ‘21: 167 ‘22: 175 ‘23: 92 ‘24: 51
Gaming venture funding from Q1 2020 through Q2 2024, $m

Africa: $2m in disclosed deal funding in Q2
19
Late Early Growth Unattributed VC
Largest VC deals in Q2
Size Company
# of gaming venture deals from Q1 2020 through Q2 2024
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1
$3 $0 $1 $0 $6 $0 $2
$46
$1 $1 $0
$27
$0 $0 $0 $0 $2 $0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1
1
2
1 1 1 1
2
4
2
3
0
1
0
1
0
2 2
1
‘20: $3 ‘21: $8 ‘22: $48 ‘23: $27 ‘24: $2
‘20: 5 ‘21: 5 ‘22: 9 ‘23: 2 ‘24: 4
Gaming venture funding from Q1 2020 through Q2 2024, $m
Note: Early = Pre -Seed through Series A, Growth = Series B through D, Late = Series E+ VC; Source: CB Insights
Unknown SIDUS
$2.0m Cellula

Australia: 1 Gaming VC deal done in Q2 – 24
20
Late Early Growth Unattributed VC EarlyEarly
Largest VC deals in Q2
Size Company
# of gaming venture deals from Q1 2020 through Q2 2024
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1
$0 $0 $7 $5 $2
$68 $38
$219
$27 $17 $0 $6 $7 $30 $1 $12 $0 $1
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1
1 0
4
2 2
4
7 8
4 3
1 1 2 1
3 2 1 1
‘20: $8 ‘21: $113 ‘22: $263 ‘23: $43 ‘24: $12
‘20: 6 ‘21: 15 ‘22: 16 ‘23: 7 ‘24: 3
Gaming venture funding from Q1 2020 through Q2 2024, $m
Note: Early = Pre -Seed through Series A, Growth = Series B through D, Late = Series E+ VC; Source: CB Insights
$0.3m Nucanon

South America: no deals 1 since Q2 – 23
21
1: Announced deals; Note: Early = Pre -Seed through Series A, Growth = Series B through D, Late = Series E+ VC; Source: CB Insigh ts
Late Early Growth Unattributed VC
Largest VC deals in Q1
Size Company
No deal data available
# of gaming venture deals from Q1 2020 through Q2 2024
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1
$0
$120
$0 $2 $0 $0 $10 $34 $12 $0 $0 $6 $1 $0 $0 $0 $0 $0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1
0 1 0
2
0 0
5 5
3
1 0
4
1 0 0 0 0 0
‘20: $120 ‘21: $12 ‘22: $46 ‘23: $7 ‘24: $0
‘20: 1 ‘21: 7 ‘22: 9 ‘23: 5 ‘24: 0
Gaming venture funding from Q1 2020 through Q2 2024, $m

Trends + Current Events
1 YouTube and LinkedIn introduce game strategy
22
2 Introducing the Olympic Esports Games
3 Epic Games Store, Fortnite coming to iOS in EU and Japan
4 Apple to potentially face $1b in daily fines over alleged DMA breaches
5 Voodoo acquires BeReal (€500m)
6 TikTok faces a ban in the US

YouTube & LinkedIn introduce game strategy 1
23
Background: In 2019, Netflix claimed that their main competition was not other streaming services like HBO, but rather interactive
entertainment platforms like Fortnite. Since then, they have invested >$1b into building their gaming business. The platform has ~100
games on the platform, 90% of which were developed by external partners.
By venturing into gaming, Netflix aims to capture a share of the audience traditionally engaged with interactive media over passive
viewing.
• In May, YouTube formally announced that 75 games were
available to play on YouTube including Angry Birds
Showdown, Cut the Rope, and Trivia Crack, among others
• This is Google’s first return back to gaming since they shut
down the cloud streaming service Stadia in January 2023
• While Netflix’s foray into gaming suggests that this could be
a fit for YouTube who similarly specializes in passive media,
it is unclear how YouTube plans to find a niche in an
already crowded market
• In May, LinkedIn launched their first 3 games on the
platform with the intention of “spark[ ing ] conversations and
friendly competition among professionals around the world.”
• The games are designed to enhance retention, only allowing
users to play each game once per day (daily streak and high
score only)
• While this has the potential to help retention, it is unclear if
games and the value that they provide are congruent with
LinkedIn’s core value proposition as a company
Source: Netflix, YouTube, LinkedIn, The Wall Street Journal
Following this trend, major tech companies such as TikTok have also expanded into gaming. This quarter, YouTube and
LinkedIn have joined the fray, further intensifying the competition in the interactive media space:

Introducing the Olympic Esports Games 2
24
Background: In June, The Executive Board of the International Olympic Committee (IOC) proposed the creation of the “Olympic
Esports Games”. In July, IOC announced they are partnering with the National Olympic Committee of Saudi Arabia for this propo sal (a
12-year partnership to be hosted as a standalone event at an unknown date) and for the games to be hosted in the Kingdom of Saudi
Arabia. The final proposal to the International Olympic Committee will take place on the eve of the Olympic Games in Paris this month .
If confirmed, this has the potential to significantly progress esports:
1. Infrastructure spending: Being recognized by the Olympics brings
a legitimacy to any sport, and this is likely to help drive funding
from universities, governments, and other organizations into the
ecosystem for competitive gaming
2. Prestige and cultural integration: If approved, the Olympic Esports
Games will be the first ever true esports event held by the IOC and
will help to highlight the sport putting it on the same stage as
sports and events that have been celebrated for thousands of
years
3. Talent pipeline: This will expose esports to billions of people
helping to draw new and old fans to the sport. This will also help to
drive younger people to esports and provide them with role models
to aspire to in the same way that Simone Biles or Michael Phelps
have inspired young athletes in their own fields
Source: International Olympic Committee

Epic Games Store, Fortnite coming to iOS in EU and Japan 3
25
Background: Apple has recently allowed the Epic Games Store (EGS) and Fortnite to return to iOS devices in the European Union and
Japan, marking a significant development in the ongoing dispute between Apple and Epic Games
Source: Apple, PYMNTS, Gamesindustry.biz, bizjournal
European Union (primary driver: regulatory pressure):
• At the end of Q2, EGS and Fortnite were not available on iOS devices, and had faced two prior rejections. In July, Apple
approved EGS after Epic Games publicly called out Apple for violations of EU law, specifically the Digital Markets Act
(DMA). The DMA, which came into effect in March, requires Apple to allow alternative app stores on iPhones and provide
an opt -out from their in -app payment system.
• However, the dispute is not entirely resolved. Apple has reportedly asked Epic to make future changes to the design of
buttons within the EGS , particularly the “Install” and “in -app purchases” buttons. Epic Games CEO Tim Sweeney has
expressed frustration with these demands, calling them “absurd” and vowing to fight against them.
Japan (primary driver: new legislation):
• Epic Games announced that it will be bringing EGS
and Fortnite to Japan’s iOS store in 2025 due to a
new law in which required Apple and Google to
allow users to download third -party app stores onto
its platforms and provide alternative payment
systems
Note : These regional approvals do not apply globally, and
the broader conflict between Apple and Epic Games
regarding App Store policies and revenue sharing
continues. The situation remains dynamic, with ongoing
discussions about user data protection, security scanning
for sideloaded apps, and the potential for further
regulatory actions in other regions.

Apple to potentially face $1b in daily fines over
alleged DMA breaches
4
26
Background: The European Commission is preparing to levy a substantial fine on Apple for allegedly failing to fully comply with the DMA.
If imposed, the fine could amount to 5% of Apple’s average daily global revenue, which translates to over $1 billion per day. Th is potential
fine would mark the first time a company has been fined under the DMA.
The problem: The European Commission has deemed
that Apple’s current practices, particularly regarding the
App Store, do not fully comply with the DMA
requirements. Specific issues cited by the Commission
include:
Source: Apple, PYMNTS, Gamesindustry.biz, bizjournal
1
Apple’s resistance to allowing app developers to
“steer” users to external offers without imposing
fees.
2
The company’s new “Core Technology Fee” and
requirements for third -party app developers and
app stores
Apple’s position: Apple has maintained that it
believes its plan complies with the DMA and
has stated it will continue to engage with the
European Commission during their
investigations
It’s worth noting that these are preliminary findings, and
Apple could still implement further changes to avoid the
penalty. The final decision and any potential fines are yet to
be officially announced by the European Commission.

Voodoo acquires BeReal (€500m) 5
27
Background: In June, Voodoo announced they will be acquiring social media application, BeReal for €500m. Voodoo’s acquisition of
BeReal marks their first in 3 years.
1: It is unclear how Voodoo defines an active user (MAU vs WAU vs DAU); Source: Voodoo, Naavik
$3m $20m
$100m
$250m
2020 2021 2022 2023
Voodoo Hybridcasual revenue, $m
Voodoo has invested heavily into diversifying their
initial Hypercasual business into the Hybridcasual
genre, multiplying the revenue from this business
by more than 12x between 2021 and 2023.
In 2023, Hybridcasual made up
25% of Voodoo’s overall revenue
The product: The core loop of BeReal has not meaningfully changed since the
app’s initial launch in January 2020 -BeReal sends all users a daily
notification at a random time. From this point onward, users can capture and
share a double -sided photo (a point -of-view shot and a selfie). The app today
does not directly monetize their users
Traction: In their announcement, Voodoo reported that BeReal has 40m
“active users” 1today with 20m people using the app at least 6 days a week
Justifying the purchase: We estimate that the value of BeReal’s user base is
$8 -13 per MAU or $17 -33 per DAU (reasonable compared to other social
platforms). We do not believe the plan to optimize the BeReal platform alone
will be successful enough to return the meaningful investment. In order to
capture this value, we anticipate Voodoo will need to drastically expand the
capabilities of the social platform –either by integrating with their existing
social platform, Wizz (1.6m DAUs) or by following the NYT playbook (making
games a primary engagement and revenue driver)

TikTok faces a ban in the US 6
28
Background: On April 24 th, Joe Biden signed a bill that would ban TikTok in the US. The company has 9 months to divest its US arm,
otherwise, it will be shut down. On May 7 th, TikTok sued the US government claiming that, “For the first time in history, Congress has
enacted a law that subjects a single, named speech platform to a permanent, nationwide ban, and bars every American from
participating in a unique online community with more than 1 billion people worldwide.” and have deemed the ban “unconstitutio nal ”.
TikTok has 3 options:
1. Seek a potential acquirer: Assuming the company finds an acquirer in the next few
months, the acquiring company will have access to over one billion users and an
estimated $16b in revenue generated in the US alone
2. Otherwise, TikTok must shut down US operations: If a deal is not reached and the
app is shut down in the US, this could negatively impact the businesses which are
spending ~3% of global ad spend on TikTok and the platforms of >1 million influencers.
TikTok has also acted as an organic form of marketing for many smaller companies
looking to save on marketing spend.
3. (Not likely) Win their lawsuit vs the US government to maintain their US ownership
Future precedent: This could set a precedent for other companies that are owned by foreign adversaries of the US. As data
security increasingly becomes a topic of national debate, concerns around who has access to this data, especially when it rel ate s
to children, could drive further action from lawmakers.
Source: TikTok, NY Times

Top gaming industry conferences / events
2024 events schedule
Event Location Dates Category
Pocket Gamer Connects* Multiple Multiple Gaming
Consumer Electronics Show (CES)* Las Vegas, NV January 9 -12, 2024 Technology
Design, Innovate, Communicate, Entertain (DICE) Summit* Las Vegas, NV February 13 -15, 2024 Gaming
South by Southwest (SXSW)* Austin, TX March 10 -19, 2024 Gaming, Media, Technology
Game Developers Conference (GDC)* San Francisco, CA March 18 -22, 2024 Gaming
GamesBeat Summit 2024 Los Angeles, CA May 20 -21, 2024 Gaming
Augmented World Expo (AWE)* Long Beach, CA June 18 -20, 2024 Gaming, Technology
Gamescom Latam (Prev: BIG) São Paulo, Brazil June 26 -30, 2024 Gaming, Media
Siggraph* Denver, CO July 28 -August 1, 2024 Gaming, Media, Technology
Gamescom Germany* Cologne, Germany August 21 -25, 2024 Gaming
Tokyo Game Show Tokyo, Japan September 26 -29, 2024 Gaming
Web Summit Lisbon, Portugal November 11 -14, 2024 Gaming, Technology
India Game Developer Conference (IGDC) Hyderabad, India November 13 -15, 2024 Gaming
Slush* Helsinki, Finland November 20 -21, 2024 Gaming, Technology
* denotes events our team at Konvoy plans to attend
29

Konvoy: Overview and Team 30

Konvoy: by the numbers
Our top newsletters published in Q2 2024:
1. Gaming IPO Watch List (2024)
2. Version Control For 3D Assets
3. TikTok For Games: A Pipe Dream
4. Mobile Gaming Post -IDFA Deprecation
5. Virtual Pets
$260m
Assets under
management (AUM) 3 Funds
51 Investments 1 40% Of all funds invested
outside of NA
31
1: Initial investments

Konvoy invests in the platforms and
technologies at the frontier of gaming
Investment Stage
Pre -Seed, Seed,
Series A
Check Size
$1m -$5m
Submit your company idea here
Fund III
$150m
32
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T h e Konvoy Team
Josh Chapman
Josh Chapman
Managing Partners
Jason Chapman
Jason Chapman
Jackson Vaughan
Jackson Vaughan
Dani TranSenior Associate
Dani Tran
Senior Associate
Taylor HurstPrincipal
Taylor Hurst
Principal
Anthony SchenaAssociate
Anthony Schena
Associate
Investment Team Platform Team
Profile photo of Dhinuka Perera
Dhinuka PereraHead of Platform
Dhinuka Perera
Head of Platform
Carly MartinAssociate
Carly Martin
Associate
34
Sam EpsteinEA Office Manager
Sam Epstein
EA & Office Manager
Operations