Gaming Industry Report – Q3 2024

Oct, 2024 Gaming Industry Report
Q3 2024
1

Gaming industry: at a glance
• 2024 market size: $188 bn (+2.1% YoY)
• Public markets: leading public gaming ETFs up 22 –
36% YTD (vs S&P 500 = 21%)
• Venture funding in Q3‘ 24: $517 m across 92 deals
(funding +1% QoQ, number of deals -14% QoQ)
Total gamers in 2024 by region (millions):
Source: CB Insights, Newzoo, public reporting, Drake Star
Key Trends
• Epic sidesteps Apple in the EU, sues Google
• Discord launches Activities
• AI: Google <> Character.ai, Canva <> Leonardo.ai
• Savvy Games Group partners with Xsolla
• US Senate passes online child safety bills
• FTC sues TikTok for violating COPPA
• Keywords Studios goes private ($2.8bn)
• Unity fully removes Runtime Fee
2
1,809
(53% ) Asia -Pacific
244
(7% )
North America
355
(10% )
Latin America
454
(13% ) Europe
559
(16% )
Middle East & Africa
3,422m

Gaming is expected to be a $ 188 bn market in 2024
$20 $22 $32
$55 $60
$68 $77
$122 $138
$180 $183 $188
$215 $223
$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
$201 $208 $194
$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 Q2 -24
$1,056
Q1 -20
$3,902
$1,560
$2,698 $3,121
$4,039
$5,015 $4,451
$7,155
$2,051
$1,329 $932 $629 $788 $517
$2,223
$705
Q3 -24
$811 $1,278
Other Transactions 1 VC 2
Private market funding in gaming increased 15% QoQ
2020: $7,797 2021: $14,872 2022: $14,986 2023: $2,866 2024: $3,739
$1.5b nof $ 1.6b nin Other Transactions 1for Q1 -24 attributed to Disney <> Epic
+15%

Gaming VC funding: $ 517 m (+1% QoQ) in Q3 – 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 Q2 -24
$549
Q1 -20
$780
$1,072
$1,985
$1,612
$3,014
$3,387
$2,959
$1,664 $1,399
$890 $831 $555 $574 $349 $628 $512
Q3 -24
$517 $418
Unattributed VC Late Growth Early
Growth -stage funding in Q3 -24 ($ 262 m ) far surpasses 2023 average ($ 159 m )
2020: $2,818 2021: $9,998 2022: $6,913 2023: $2,310 2024: $1,658

Gaming VC deals: 92 ( – 14% QoQ) in Q3 – 24
6
# of deals
81 78 95 104 134 122 125
230 260
181 141 135 135 117 104 97 128 96 77
17
22 17 22
27
23
7
1
2 3
1
3 6 5 7
9 8
11
10
10
Q4 -23 Q1 -24 Q2 -24 Q3 -24
95 93 112 130
167 142 158
270 294
207
163 151 150 127 116 115
143
107 92 10
Q2 -22
8 12 2
12
16
12 81 8 9 7 11
9
9 9
Q1 -20 Q2 -20 Q3 -20 Q4 -20 Q1 -21 Q2 -21 Q3 -21 Q4 -21 Q1 -22 Q3 -22 Q4 -22 Q1 -23 Q2 -23
1
3 7 1 5 7
6
2 6
Q3 -23
Unattributed VC Late Growth Early
The number of early -stage deals sets new low since Q1 -20
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: 737 2022: 815 2023: 508 2024: 342

Gaming VC: AI funding
7
22% of Gaming VC funding in Q3 -24 went into companies related to or referencing AI
1%
9%
4%
7% 6% 4%
13%
7%
7%
16%
7%
22%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
$220
Q4 -20 Q1 -21
2%
Q2 -21
2%
Q3 -21 Q1 -20 Q4 -21
5%
Q1 -22 Q2 -22
8%
Q3 -22 Q4 -22 Q1 -23
5%
Q2 -23 Q3 -23
4%
Q4 -23 Q1 -24
10%
Q2 -24 Q3 -24
$4
$36 $33
$71
$111
$39
$70
$142
Q2 -20
$210
$114
$66 $57
$27
$137
$13
$44 $52
$113
Q3 -20
$90
% of VC funding Unattributed VC Late Growth Early
Note 1: AI = companies that mention “artificial intelligence”, “machine learning”, or AI in their company description; Source : C B Insights
$ in millions , % of total Gaming VC funding
2020: $144 (5%) 2021: $361 (4%) 2022: $527 (8%) 2023: $187 (8%) 2024: $209 (13%)

Largest gaming x AI VC deals (YTD)
Gaming x AI investments –2024 YTD by deal size
8
QTR
2
1
1
3
1
1
1
1
3
3
Company name
Astrocade
Carbonated
ArenaX Labs
Pentagon Games
Bitpart.AI
Wanruntong
Jabali
Metica
Series Entertainment
Volley
QTR
3
3
3
2
2
2
3
2
2
3
Raise, $m
$12.0
$11.0
$6.0
$6.0
$5.4
$5.0
$5.0
$5.0
$28.0
$55.0
Raise, $m
$4.0
$4.0
$3.9
$3.5
$3.2
$3.0
$2.6
$2.4
$4.3
$4.5
Company name
Bitmagic
Iconic AI
Reforged Labs
Mage Games
GFAL
FantaGoal
Videogame.ai
Skytopia
Play AI
BubblePlan
Note 1: AI = companies that mention “artificial intelligence”, “machine learning”, or AI in their company description; Source : C B Insights
No logo
A black and red cube with textDescription automatically generated
No logo
Geo
NA
NA
NA
Asia
NA
Asia
NA
Europe
NA
NA
Geo
Europe
Europe
NA
Asia
Europe
Asia
NA
NA
Asia
NA
Rank
2
1
3
4
6
5
7
8
9
10
Rank
12
11
13
14
16
15
17
18
19
20

Gaming VC: Blockchain and AI funding
9
Less VC capital is going into AI -related companies now compared to blockchain in 2021
22% 21%
51%
23%
46% 41% 40% 36% 31%
63%
53%
0%
10%
20%
30%
40%
50%
60%
70%
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
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 Q3 -24
$446 $345
Q1 -21
$1,739
$688 $773
$579
$358
$186 $198 $177 $87
$243 $320 $275
35% 22% 25%
39% $1,047
% of VC funding Both AI Blockchain
Note 1: AI = companies that mention “artificial intelligence”, “machine learning”, AI, or ML in their company description; Bl ock chain = companies that mention “blockchain”, “web3”, adjectives related to decentralization, “play -to-earn”, and equivalent acronyms; Source: CB Insigh ts
2021: $3,578 (36%) 2022: $2,398 (35%) 2023: $648 (28%) 2024: $838 (51%)
$ in millions , % of total Gaming VC funding

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%
2020 2021 2022 2023 2024
Source: Public reporting as of September 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 and HERO have both outperformed the S&P 500 YTD
10
YTD Performance (9/1):
• ESPO: 36.1%
• HERO: 21.7%
• S&P 500: 21.4%

Public gaming companies hold $ 33b n in cash
and equivalents; a healthy M&A environment
Gaming companies Tech companies with gaming divisions
Company Cash & equivalents 2(USD)
$9.6 bn
$2.6 bn
$2.6 bn
$2.4 bn
$2.4 bn
$1.8 bn
$1.7 bn
Others 1 $10.5 bn
Total $33.4 bn
Company Cash & equivalents 2(USD)
$71.2 bn
$32.0 bn
$27.2 bn
$25.6 bn
$21.1 bn
$18.3 bn
$12.6 bn
$6.6 bn
Total $214 bn
1: Nexon, Square Enix, Ubisoft, Unity, Sega, TTWO, Roblox, Playtika , Applovin , Embracer, NCSoft ; 2: Does not include short -term investments; Source: Latest public reporting and converted to based on historical exchange rate on June 28, 2024
11

Gaming M&A: 41 transactions in Q3 – 24
12
29 24
45 50
57 60
72 68 71
52
45
35 40
30 26
44 40
26
41
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 Q3 -24
Gaming M&A sets 2024 high (+58% MoM)
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: Q2 -24 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: 148 2021: 257 2022: 203 2023: 140 2024: 107

Largest gaming tech & platform VC deals
Gaming tech & platform investments –Q3 2024
* denotes Konvoy portfolio company ;1: Series Entertainment is considered both tech & platform and content; Source : CB Insights
13
Stage Raise, $m Region Company name
Series A $28.0 North America Series Entertainment 1
Series D $13.0 Europe Medal
Series B $12.7 Europe FRVR
Seed $12.0 North America Artificial Agency
Seed $8.0 North America Rune (ex: Dusk)
Series A $7.5 North America Cartridge
Series D $6.0 North America Nerd Street Gamers *
Seed $6.0 Asia Pentagon Games
Series C $55.0 North America Volley
Comments:
• 9 of the top 10 T&P
deals were into
companies in NA or
Europe
• Funding for the top 10
T&P deals totaled
$228.2m ( -7% QoQ)
• 4 of the top 10 T&P
deals (Volley, Series
Entertainment,
Artificial Agency, and
Pentagon; $ 101 m in
funding) explicitly
mention their AI
capabilities on their
website
Series B $80.0 North America ID Planet

Largest game content VC deals
Game content investments –Q3 2024
1: Series Entertainment is considered both tech & platform and content; Source : CB Insights
14
Stage Raise, $m Region Company name
Series B $80.0 Asia HYBE IM
Series A $28.0 North America Series Entertainment 1
Series A $11.3 Europe Eschatology Entertainment
Seed $11.2 North America Gameplay Galaxy
Series D $10.0 Asia Double Jump.Tokyo
Seed $10.0 Asia Cypher Games
Series A $8.0 North America Auto Legends
Seed $7.0 Europe Blue Scarab Entertainment
Series A $32.6 North America Azra Games
Seed $6.0 North America Darkbright Studios
Comments:
• The top 10 Content
deals totaled
$204.0 m (+73% QoQ),
primarily driven by
outlier, HYBE IM
• 3 of the top 10
Content deals
($53.7 m) were into
web3 -related studios
Auto Legends (@autolegendsrace) / X

Regional Breakdown 15

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 Q3 2024, $m
28 27
20
4 3
2
2 2
North America Asia
1
Europe
1 1
South America
1
Africa
0
Australia
34 32
23
2 1 0
Number of gaming venture deals in Q3 2024
$157
$42 $52
$146
$90
$26
0
20
40
60
80
100
120
140
160
180
200
220
240
260
280
300
320 $3
North America Asia Europe
$2
South America Africa Australia
$306
$132
$77
$2 $0 $0
16
Late Early Growth Unattributed VC

NA: similar funding to Q1 despite less deals
* denotes Konvoy portfolio company; Note: Early = Pre -Seed through Series A, Growth = Series B through D, Late = Series E+ VC; S ource: CB Insights
17
Late Early Growth Unattributed VC
Largest VC deals in Q3
Gaming venture funding from Q1 2020 through Q3 2024, $m
# of gaming venture deals from Q1 2020 through Q3 2024
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1
$293 $352 $673
$1,244 $755
$1,540 $2,011
$843 $716 $569 $329 $297 $195 $282 $154 $331 $144 $306 $456
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1
40 35 43 48 50 59
94 93 71 57 59 63 46 43 38 54 35 34 39
‘20: $1,774 ‘21: $5,550 ‘22: $2,456 ‘23: $927 ‘24: $781
‘20: 157 ‘21: 251 ‘22: 280 ‘23: 190 ‘24: 123
$80.0 m ID Planet
Size Company
$55.0 m Volley
$32.6 m Azra Games
$28.0 m Series Entertainment
$12.0 m Artificial Agency
$11.2 m Gameplay Galaxy
$8.0 m Rune (ex: Dusk)
$8.0 m Auto Legends
$7.5 m Cartridge
$6.0 m Nerd Street Gamers *
$6.0 m Darkbright Studios

Asia: Q3 growth funding sets 12 – month high
Note: Early = Pre -Seed through Series A, Growth = Series B through D, Late = Series E+ VC; Source: CB Insights
18
Late Early Growth Unattributed VC
Largest VC deals in Q3
$10.0 m Double Jump.Tokyo
$80.0 m HYBE IM
Size Company
$10.0 m Cypher Games
$6.0 m Pentagon Games
Gaming venture funding from Q1 2020 through Q3 2024, $m
# of gaming venture deals from Q1 2020 through Q3 2024
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
$62
Q1
$165 $231 $532 $473 $512 $703
$1,321
$603 $488 $347 $380 $247 $203 $120 $111 $287
Q3
$132 $73
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
28
Q1
42 46 69 53 59
101 117
80 61 62 50 48 48 53 59 41
Q3
32 28
‘20: $532 ‘21: $2,220 ‘22: $2,759 ‘23: $950 ‘24: $530
‘20: 144 ‘21: 282 ‘22: 320 ‘23: 199 ‘24: 132

Europe: similar funding QoQ ( – 1%)
Note: Early = Pre -Seed through Series A, Growth = Series B through D, Late = Series E+ VC; Source: CB Insights
19
Late Early Growth Unattributed VC
Largest VC deals in Q3
$12.7 m FRVR
$13.0 m Medal
Size Company
$11.3 m Eschatology
Entertainment
$7.0 m Blue Scarab
Entertainment
Gaming venture funding from Q1 2020 through Q3 2024, $m
# of gaming venture deals from Q1 2020 through Q3 2024
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1
$49 $142 $160 $202 $377
$894
$623 $496 $305 $324 $215 $116 $106 $59 $75 $175 $78 $77 $30
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1
23 32 36 44 36 35
61 67
47 39 29 31 30 23 20 26 28 23 26
‘20: $381 ‘21: $2,096 ‘22: $1,340 ‘23: $356 ‘24: $330
‘20: 117 ‘21: 176 ‘22: 182 ‘23: 104 ‘24: 77

South America: first deals 1 done this year
20
Late Early Growth Unattributed VC
Largest VC deals in Q3
$0.2 m Rockhead Games
$2.0 m ETW
Size Company
Gaming venture funding from Q1 2020 through Q3 2024, $m
# of gaming venture deals from Q1 2020 through Q3 2024
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1
$0
$120
$0 $2 $0 $0 $10 $34 $12 $0 $0 $6 $1 $0 $0 $0 $0 $2 $0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1
0 1 0
3
0 0
5 5
3
1 0
4
1 0 0 0 0
2
0
‘20: $120 ‘21: $12 ‘22: $46 ‘23: $7 ‘24: $2
‘20: 1 ‘21: 8 ‘22: 9 ‘23: 5 ‘24: 2
1: Announced deals; Note: Early = Pre -Seed through Series A, Growth = Series B through D, Late = Series E+ VC; Source: CB Insigh ts

Africa: no deals 1 done in Q3 – 24
21
Late Early Growth Unattributed VC
Largest VC deals in Q3
Size Company
Gaming venture funding from Q1 2020 through Q3 2024, $m
# of gaming venture deals from Q1 2020 through Q3 2024
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1
$3 $0 $1 $0 $6 $0 $2
$46
$1 $1 $0
$27
$0 $0 $0 $0 $2 $0 $0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1
1
2
1 1 1 1
2
4
2 2
0
1
0
1 1
2 2
1 1
‘20: $3 ‘21: $8 ‘22: $48 ‘23: $27 ‘24: $2
‘20: 5 ‘21: 5 ‘22: 8 ‘23: 3 ‘24: 5
1: Announced deals; Note: Early = Pre -Seed through Series A, Growth = Series B through D, Late = Series E+ VC; Source: CB Insigh ts
Unknown Saikoro

Australia: no deals 1 done in Q3 – 24
22
Late Early Growth Unattributed VC
Largest VC deals in Q3
Size Company
Gaming venture funding from Q1 2020 through Q3 2024, $m
# of gaming venture deals from Q1 2020 through Q3 2024
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1
$0 $0 $7 $5 $2
$68 $38
$219
$27 $17 $0 $6 $7 $30 $1 $12 $0 $0 $1
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1
1 0
4
2 2
4
7 8
4 3
1 1 2 1
3 2 1 0 1
‘20: $8 ‘21: $113 ‘22: $263 ‘23: $43 ‘24: $12
‘20: 6 ‘21: 15 ‘22: 16 ‘23: 7 ‘24: 3
No deal data available
1: Announced deals; Note: Early = Pre -Seed through Series A, Growth = Series B through D, Late = Series E+ VC; Source: CB Insigh ts

Trends + Current Events
1
23
2
3
4
5
6
7
8
Epic sidesteps Apple in the EU, sues Google
Discord launches Activities
AI: Google <> Character.ai, Canva <> Leonardo.ai
Savvy Games Group partners with Xsolla
US Senate passes online child safety bills
FTC sues TikTok for violating COPPA
Keywords Studios goes private ($2.8bn)
Unity fully removes Runtime Fee

Epic sidesteps Apple in the EU, sues Google
24
Apple (iOS): In August, Epic launched their own app store for iOS in
the European Union. This is the first time that Apple has faced a rival
app store on its native operating system.
• 3P games will begin onboarding in December -Epic will take a
maximum 12% commission (vs Apple’s 30%)
Google (Android): In September, Epic announced that they have filed
a lawsuit against Google and Samsung for illegally colluding to block
competition in distribution via the Auto Blocker feature:
• The Auto Blocker feature is a setting that disables the user’s ability
to install apps from any platform other than the Google Play Store
and the Samsung Galaxy Store
• Epic is asking the court to mandate a reversal of the feature and to
uphold the previous jury verdict against anti -competitive measures
(Epic vs Google)
Source: Epic Games, GamesIndustry.biz, The European Commission
X

Discord launches Activities
25
Source: Discord
X
Overview
On September 26, 2024, Discord launched Activities for all developers. Activities are multiplayer games and social
experiences that can be launched in Discord and benefit from integrating with Discord’s features like user profiles.
• Development: Activities are single page web apps embedded in the Discord app.
These web apps use the Embedded App SDK (launched March 18, 2024) to
communicate with the Discord clients
• Discovery: Today, there are over 2,000 apps available. To help with discovery,
Discord released their App Launcher on September 24, 2024 for both mobile and
PC. Users can now discover Trending and Popular apps via search and add them to
either a specific server or their own account. Additionally, Discord is leveraging
existing social networks more efficiently –users can more easily see and join
Activities friends and fellow server members are actively using
• Monetization: Developers are now able to launch in -app purchases (IAP) directly
within their Activities and release and track premium features such as Durable
(permanent) SKUs and Consumable SKUs

AI: Google <> Character.ai, Canva <> Leonardo
26
Source: Character.ai, Canva, Reuters, TechCrunch
X
Google hires Character.ai team , licenses models Canva acquires Leonardo.ai
• Character.ai is an AI chatbot platform where users
can interact with customizable characters
• In August, 2024, Character. ai,announced that they
have signed an agreement with Google, granting
them a non -exclusive license to their technology in
exchange for funding (undisclosed amount)
• As a part of the deal, Character.ai’s 2 co -founders
will rejoin Google, bringing along a small team
• On July 29, 2024, Canva announced that they will be
acquiring Leonardo , an AI tool for creating and
editing images
• In addition to the foundational models, Canva is
acquiring a team of 120 researchers, engineers and
designers
• Leonardo is the second AI -related acquisition by
Canva: Kaleido , the drag -and -drop background
removal service for images and video, was acquired
in 2021

Savvy Games Group partners with Xsolla
27
Source: Xsolla
X
On August 27, 2024, Savvy Games Group and Xsolla finalized their partnership agreement to work together to further
Saudi Arabia’s vision of becoming a global gaming and esports hub by 2030. There are 4 key initiatives:
“Over the past few years, Saudi
Arabia has proven its
commitment to building a lasting
gaming ecosystem for itself and
the region. This partnership
marks a crucial first step in our
mission to empower a new
generation of game developers in
one of the most dynamic and
rapidly growing regions for the
esports and gaming industries.”
–Chris Hewish, Chief Strategy
Officer at Xsolla
Create 3,600 new
gaming jobs by 2030 in
Saudi Arabia
Establish a regional
Xsolla HQ in Riyadh
Establish an a cademy ,
incubator and
accelerator in Riyadh
Host industry -leading
events that support
developers in Riyadh

US Senate passes online child safety bills
28
Source: U.S. Senate
X
What’s happens next?
Both bills now await review
and approval by the House of
Representatives, which
reconvened on September 9,
2024.
However, it has been noted by
multiple sources that it is
uncertain if the House will
review either KOSA or COPPA
2.0 by the end of the session,
given the size of queue they
have.
On July 30, 2024, the U.S. Senate overwhelming passed 2 child safety bills:
2 Children and Teens’ Online Privacy Protection Act (COPPA 2.0)
COPPA 2.0 aims to update the original Act passed in 1998 in 3 specific ways:
1. Extend the age of protection from under 13 to under 16 years old
2. Strengthen data privacy protections for minors by requiring explicit consent
from guardians, broadening the definition of personal information, and
restricts the amount of time companies can store minors’ personal
information
3. Mandate clear and accessible mechanisms for parents and teenagers
regarding data collection
1 Kids Online Safety Act (KOSA)
KOSA aims to establish a broad “duty of care” for online platforms, requiring
them to take reasonable measures to prevent and mitigate various sources of
harm to minors (17 and under)

FTC sues TikTok for violating COPPA
29
Source: U.S. Senate
X
The FTC alleges that TikTok:
In August 2024, the Federal Trade Commission (FTC) filed a lawsuit against TikTok and its parent company ByteDance for
violating children’s privacy laws (COPPA).
1. Knowingly and repeatedly violated kids’ privacy, threatening the safety of
millions of children across the country
2. Allowed millions of children under 13 on their platform designated for users
13 years and older, violating the Children’s Online Privacy Protection Act
(COPPA)
3. Collected personal data from underage users without notifying their parents
or obtaining consent
4. Built back doors into its platform that allowed children to bypass age
restrictions
5. Made it difficult for parents to request deletion of their child’s account and
often failed to comply with such requests
What’s happens next?
The complaint asks the court
to impose civil penalties
against ByteDance and TikTok
and to enter a permanent
injunction against them to
prevent future violations of
COPPA. The FTC allows civil
penalties up to $51,744 per
violation, per day.
The Commission voted 3 -0-2
to refer the complaint to the
Department of Justice.

Keywords Studios goes private ($2. 8 bn)
30
Source: Keywords Studios, public reporting
X
€14m €16m €37m €58m €97m €151m
€251m €327m €374m
€512m
€691m
€780m
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Keywords revenue, €M
On July 3, 2024, EQT, Temasek, and Canadian Pension Plan (CPP) announced their pending acquisition of Keywords
Studios, taking the company private off of the London Stock Exchange.
Up until this point, Keywords Studios has been a strong acquirer in this space, spending €225m in acquisitions in 2023
alone (>2x what was spent from 1998 -2021).
In 2023, $ 38b n was spent
in video game content
creation; 66% of this was
internal investment and
34% of this was spent on
outsourced external
content creation.
With a strong cash
position and well -funded
partners on their cap
table, Keywords is in a
strong position in this
market.
Went public

Unity fully removes Runtime Fee
31
Source: Unity
X
Exactly 1 year later on September 12, 2024, Unity announced that they
will be removing the Runtime Fee for games customers entirely.
Instead, they will be reverting to their previous seat -based
subscription model, including for the future Unity 6:
• Unity Personal: Will remain free and the revenue and funding
ceiling will increase from $ 100 kto $ 200 k
• Unity Pro: $2,200 per seat per year (+8%); required for customers
with >$ 200 kof total annual revenue and funding
• Unity Enterprise: +25% subscription price increase across all Unity
Enterprise customers; required for customers with >$25m of total
annual revenue and funding
On September 12, 2023, Unity first
instituted a new pricing model (the
Unity Runtime Fee) which would charge
developers based on game installs
rather than the previous subscription –
based model. This was instituted to
due to a lack of profitability and IDFA
pressure on the Ads business, however,
was met with serious backlash.
10 days later, Unity walked back from
this model, removing the Runtime Fee
for personal licenses, offering
optionality between a 2.5% revenue
share or a calculated amount based on
monthly new user engagement, and
allowing self reporting of numbers.
History of the Runtime Fee
“Canceling the Runtime Fee for games and instituting these
pricing changes will allow us to continue investing to improve
game development for everyone while also being better
partners” –Matt Brombert , President and CEO of Unity

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
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
32

Konvoy: Overview and Team 33

Konvoy: by the numbers
Our top newsletters published in Q 3 2024:
1. Fundraising Challenges in Gaming
2. The Invisible $2.8B Company
3. Building a Foundation for Esports
4. The Web: Tearing Down the Walled Garden
5. Failure to Launch: The Series A Crunch
$260m
Assets under
management (AUM) 3 Funds
52 Investments 1 38% Of all funds invested
outside of NA
34
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
35
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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
36
Sam EpsteinEA Office Manager
Sam Epstein
EA & Office Manager
Operations