Q2 2025 Gaming VC Trends

Q2
2025
REPORT PREVIEW
The full report is available through
the PitchBook Platform.
EMERGING TECH RESEARCH
Gaming VC Trends
VC activity across the gaming ecosystem

CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 2
Institutional Research Group
Analysis
Eric Bellomo Senior Research Analyst,
E-commerce and Gaming
eric.bellomo@pitchbook.com
Data
Harrison Waldock Data Analyst
pbinstitutionalresearch@pitchbook.com
Publishing
Report designed by Josie Doan , Jenna O’Malley , and Megan Woodard
Published on September 16, 2025
Gaming landscape 3
Gaming VC ecosystem market map 4
VC activity 5
Gaming VC deal summary 24
Contents
Q2 2025 Gaming VC Trends

CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 3
Gaming
landscape
Development
Operations
Access
Content
Experience
Q2 2025 Gaming VC Trends

CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 4
Gaming VC ecosystem market map
Q2 2025 Gaming VC Trends

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VC activ it y
Summary and outlook
Venture activity for gaming contracted sharply in Q2. $904.6 million was raised across 113
deals, QoQ declines of 27.2% and 17.5%, respectively. While deal value has been propped up
in select quarters by a small batch of outsized rounds, deal count has consistently decelerated
since Q1 2024.
Gaming technology (gametech) and software-as-a-service (SaaS) activity continued to be
robust in Q2 with $512.6 million invested across 39 deals (and $2.4 billion across 157 rounds on
a TTM basis) due to advancements in multimodal generative AI (GenAI) and the need to rein
in development costs and time to market. Nevertheless, content developers are the industry’s
engine, capturing nearly half of all deals and more than two-thirds of disclosed exit value in Q2.
The YTD median deal size increased by 19%, supporting growth across all deal stages, while the
median pre-money valuation jumped by 41.7%.
Demand for interactive entertainment remains strong. 50 million viewers livestreamed the
Summer Game Fest in June, 1 and another 72 million livestreamed Gamescom in August. 2
Industry-wide spending is projected to exceed $188.9 billion, surpassing the previous
pandemic-era high. 3 Despite robust consumer demand, structural headwinds are mounting: Play
patterns are ossified; content supply vastly outpaces demand, with intense competition for user
attention; and spiraling user acquisition and development costs are eroding margins. Investors
are signaling their trepidation: The number of VC investors actively backing content developers
Source: PitchBook • Geography: Global • As of June 30, 2025
Gaming VC deal activity
$3.4$3.7$5.3$8.2 $ 7. 0$8.2$19. 2 $15.9 $4.5$ 7. 7$2.1
404
416464 534
595693
1,257
1,227
757
732
250
2015 2016 20172018 20192020 20212022 202320242025
Deal value ($B) Deal \bount
Source: PitchBook • Geography: Global • As of June 30, 2025
Gaming VC exit activity
$2.7 $2.3$10.6
$7.5$5.8
$30.2 $100.0 $6.0
$5.9
$3.0 $0.3
26
3226
3444 50
114
71
47 53
22
2015 2016 20172018 20192020 20212022 202320242025
Exit value ($\b) Exit count
1: “Summer Game Fest Viewership Jumps 89% to Record 50 Million Livestreams,” Variety, Jennifer Maas, June 13, 2025.
2: “Gamescom Opening Night Live 2025 Audience Reaches Over 72m Viewers,” GamesIndustry.biz, Sophie McEvoy, August 26, 2025.
3: “How Did the Global Games Market Reach $182.7b in 2024—and What’s Next?” Newzoo, Michiel Buijsman, June 24, 2025.
Q2 2025 Gaming VC Trends

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VC ACTIVIT Y
is pacing well below the prior year (1,129 in 2024 versus 330 YTD) and approaching parity with
2015-2018 totals, and strategics are playing an increasingly prominent role.
The exit outlook is even more strained. Combined VC- and PE-backed exits have totaled $347.7
million from 26 exits YTD, the lowest run rate in our reporting period, although announced exits
will push these figures higher once they close. Premium assets continue to attract buyers—
exemplified by CVC Capital Partners and Blackstone’s Dream Games buyout—but the bifurcation
between top-tier assets and the rest of the pack is more pronounced than ever. This exit blockade
is complicated by the lack of viable IPO candidates. Discord is inching toward a public listing; Epic
Games lacks a clear incentive in the near term; and other candidates, including Dream Games and
Niantic, have opted for other paths. Only five other companies in our analyst-curated vertical are
in IPO registration.
Dealmaking trends
VC deal value and count
Gaming companies raised $904.6 million in venture capital during Q2 2025, marking sharp top-line
contractions of 83.3% QoQ and 47.6% YoY. Adjusting for outlier Q1 deals such as Infinite Reality’s
$3 billion raise, the QoQ delta in deal value narrows to 27.2%. The deceleration in deal count was
modest, with 113 closed rounds in Q2 compared with 137 in Q1 (declining 17.5% QoQ and 42.1%
YoY). The current run rate suggests 2025 is pacing for a 31.1% pullback in annual deal volume,
a notable deceleration after deal activity flattened in 2023 and 2024. Deal value remains highly
concentrated in a handful of larger transactions, leaving YTD deal value up 23.2%. The austerity of
Q2 underscores the industry’s challenging unit economics, red-ocean console cycle and platform
shift, and ossified play patterns.
Deal stage composition
YTD VC deal volume has concentrated in pre-seed/seed deals (31.9%) with an even split between
early- and late-stage rounds (roughly 29%). Venture growth was the only stage to increase its
share QoQ, rising from 3.6% to 9.7%. The pre-seed/seed and early-stage crunch persists, with
their combined share declining from a peak of 77% to 82% of deals per quarter in 2022 to just
61.1% in Q2. In contrast, late-stage and venture-growth activity has recovered, jumping from 18%
to 22% of deals to nearly 40% over the same time frame. This pendulum swing indicates investors
presently favor established companies with commercial traction over early-stage newcomers,
particularly as adjacent Web3 and Metaverse-induced hype has dissipated.
Deal sizes and valuations
The YTD median deal size stands at $5 million, up 19% from 2024, growing across all stages
and led by the late stage, whose median increased from $5.6 million in 2024 to $7 million YTD.
Elsewhere, pre-seed/seed rounds rose 21.2% to $4 million, early-stage deals climbed 26% to $6.3
million, and venture-growth climbed 34.5% to $11.7 million. Valuations have followed a similar
upward trajectory, with the median pre-money valuation rising from $21.1 million in 2024 to $29.9
million YTD, setting record or near-record levels across stages. Gains at the pre-seed/seed stage
were more modest, increasing from $15 million to $19.2 million, compared with the late stage (from
$40.4 million to $50 million) and the early stage ($42.8 million to $49 million), although a small
batch of deals inflate these figures at the later stages.
Q2 2025 Gaming VC Trends

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B2C versus B2B
Our expectation that investment in gametech/SaaS platforms would begin to close the gap with
content developers—while content would continue to capture the bulk of long-term value—has
largely been borne out. Investors remain attracted to gaming’s vast total addressable market,
AI optimism, and the familiarity of SaaS/product-led growth models, even as the turbulence
of game development cycles tempers enthusiasm for pure content bets. In Q2, development
startups raised $512.6 million from 39 deals while content developers raised $261.5 million from
52 rounds. On a TTM basis, content continues to lead development on both deal value ($3.2
billion versus $2.4 billion) and volume (278 deals versus 157 deals). Exit dynamics reinforce this
trend: Content/IP continues to capture the most realized value, accounting for 14 exits YTD for
the content category versus eight across noncontent platforms, consistent with the pattern
highlighted in our Q1 gamet ech note .
Top deals
Q2’s largest transactions clustered around AI and emerging markets expansion. Runway landed
the sector’s largest deal, a $307.4 million Series D led by General Atlantic. 11 other transactions,
detailed in the “AI developments” section below, targeted GenAI across asset generation,
character animation, and quality assurance/playtesting. Turkey, the Middle East & North Africa,
and other emerging markets were attractive to investors. Turkish fundraising activity included
rounds for Bigger Games ($25 million), Fuse Games ($7 million), TaleMonster Games ($7 million),
and Boby.AI ($1.5 million). Israel’s Sett AI also raised a $15 million Series A. Another $47 million
flowed to startups across India, Estonia, Singapore, Argentina, and Brazil. One of the industry’s
mega-themes, and the focus of our previous predictions , underscores the utility, prominence, and
need for emerging markets to become net exporters of content. Other leading content developer
deals during Q2 included Million Victories’ $45.2 million late-stage round, $30.8 million for
DRIMAGE, $20.5 million for Novig, and $20 million for Freestyle Chess.
VC and PE exit value and count
In Q2, combined VC- and PE-backed exit activity underwhelmed, totaling $347.7 million from 26
exits YTD. The current run rate for exit activity suggests 2025 will have the lowest annual figures
in our reporting period, falling well below the next-lowest mark of $3.1 billion in 2015, although
announced exits will certainly push these figures higher once they close, including the buyout of
Dream Games by CVC Capital Partners and Blackstone. Supercent’s buyout by MC Partners was
the largest exit of disclosed value in Q2 at $124.3 million, followed by Mega Fortuna’s $70 million
purchase by Aonic.
M&A and buyout activity is faring better in 2025, producing 56 transactions and $6.8 billion YTD,
effectively pacing for parity YoY. Other notable exits of undisclosed value include Xsolla’s purchase
of Ludo, Loci’s exit to Epic Games, and Mobalytics’ exit to ESL FACEIT. Despite sluggish activity,
demand for liquidity is strong, but a bifurcation between AAA companies or IP (Dream Games,
Tencent/Nexon, Tencent/Ubisoft) materially shrinks the exit universe, especially with the current
dearth of viable IPO candidates.
VC ACTIVIT Y
Q2 2025 Gaming VC Trends

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Recent developments
Roblox’s upward ascent continues
The UGC platform’s share price doubled YTD through mid-August, a bright spot in Q2 and Q3
amid confidence-shaking layoff announcements. The breakout success of Grow a Garden, a game
where users plant, cultivate, and sell crops, was a key data point for Wall Street, illustrating that
the platform can predictably produce and surface highly retentive titles. Thus far, engagement has
gravitated to viral, breakout hits while Roblox struggles with discoverability. The ability to retain
users within Roblox while they age up is another material tailwind.
Roblox’s commerce engine continues to build momentum. A suite of commerce APIs was released
in May with Shopify as an initial integration partner. Strong preliminary results from the company’s
advertising services are a positive indicator for its ability to improve its daily active user/monthly
active user monetization. 4 In June, Roblox’s licensing program launched with partnerships with
Lionsgate, Netflix, Sega, and more to support creator partnerships via popular IP. 5 Finally, following
Epic’s victory over Apple regarding app store reforms, the company’s margins also stand to
improve from reduced app store fees, which currently account for over 20% of the firm’s nearly
$4 billion in revenue. 6
VC dollars have trickled into UGC developers across Roblox and UEFN, including Gamefam,
Barnyard Games, and others, but platform risk and a lack of exits have inhibited further
investment. Q2 nevertheless produced consolidation via the acquisition of Brookhaven by
Voldex, creating one of the largest ecosystem platforms with 265 million monthly active users
and well-known titles such as Driving Empire and NFL Universe Football. VC-backed UGC
developers are relatively niche, but we anticipate that more robust commercial and monetization
levers, improved platform economics, and consolidation will warrant additional attention in the
coming year.
AI developments
Venture investment continues to flow into startups spanning asset generation (Runway, Layer,
Intangible, Glass, and Hedra), world models (SpAItial), testing agents (Filuta), character animation
(Cartwheel and Latent), user acquisition (Sett AI), and IP monetization (Camp). Excluding Runway’s
outsized $307.4 million Series D, more than $130 million went to GenAI-focused companies in
Q2. Incumbents are also accelerating their own positioning: Following Supercell’s acquisition of
Niantic’s gaming unit, Niantic launched an AI innovation lab, while Tencent introduced the Huyan
3D World Model 1.0 to create explorable, interactive environments, moves that frame major
platforms as both publishers and infrastructure providers. On the labor front, SAG-AFTRA reached
a tentative deal with developers after a year-long strike over safeguards against displacement,
yet tensions remain as the union filed suit against Epic Games for its use of Darth Vader’s
AI-generated voice. Collectively, these dynamics underscore an industry in flux: Insurgent startups
are challenging the status quo with fresh capital, incumbents are fortifying strategic moats, and
labor rights are being actively litigated as the contours of the next generation of gaming are drawn.
VC ACTIVIT Y
4: “Roblox Launches Rewarded Video Ads, Partners With Google to Scale Immersive Advertising,” Roblox, Apri l 1, 2025.
5: “Roblox Launches New Licensing Platform for Experiences,” Roblox, Manuel Bronstein, July 15, 2025.
6: “Roblox Is Already the Biggest Game in the World. Why Can’t It Make a Profit (and How Can It)?” Epyllion, Matthew Ball, August 18, 2024.
Q2 2025 Gaming VC Trends

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App store litigation resolved
In April, a US federal judge ruled in favor of Epic Games in its long-running antitrust dispute with
Apple, requiring Apple to allow developers to steer users to alternative payment options outside of
the App Store. By mid-Q3, Epic also prevailed over Alphabet in a Google Play Store appeal and in a
separate case in Australia. Globally, regulatory pressure on platform holders is mounting. In April,
the European Commission fined Apple and Meta a combined $792 million for Digital Markets Act
violations. Similar legislative efforts are underway in countries such as Japan and the Netherlands. 7
The implications for the gaming industry are significant. Mobile games account for $100.3 billion
globally, 55% of the industry’s revenue. 8 Estimates indicate that the top 15 mobile game developers
could face a $4.1 billion windfall if fees are reduced from 30% to 20%, doubling the operating profit
of the largest developers, such as Take-Two Interactive. 9
The ecosystem implications are wide-ranging. Apple has traditionally kept an arm’s length from
the gaming industry, but in Q2, it completed its first-ever game studio acquisition (RAC7) and
announced a forthcoming gaming app. Gametech startups operating payment platforms (Xsolla,
Adyen, Coda, and Paddle), merchant-of-record web shops (Neon, Stash, Appcharge, and Sanlo),
and mobile developers all stand to benefit. But the biggest winners will be traditional mobile
developers: Supercell, Dream Games, Scopely, and the like, likely pushing developers to funnel
more into user acquisition in hopes of higher lifetime value.
Hardware updates
After the Switch 2 rollout was encumbered by tariff policies and higher-than-anticipated first-party
title prices, the device outperformed expectations by breaking launch-week sales records with
1.1 million units. Both pent-up demand and a solid content pipeline contributed to the success.
Nintendo’s net sales for Q1 reached $3.9 billion, up 132.1% YoY, with operating profit up 4.4% YoY
to $386.8 million. By August, 5.8 million hardware units and 8.7 million software units of the Switch
2 were sold worldwide. 10 Noncore market demand was solid, accounting for 20% of shipments.
On the competitive front, Xbox announced a deeper relationship with chipset provider AMD
(which also works with Xbox competitor Sony). Key details include a potential hand-held form
factor; a possible research & development collaboration; and the extension of Xbox to other
storefronts, as was established with the Xbox ROG Ally handheld. Broadly, these moves align with
Microsoft’s multiplatform distribution strategy. At the start of Q2, Sony announced strong PS5
sales performance—supported by the $700 Pro unit—and improved hardware profitability across
its product lines.
Collectively, these developments underscore a pronounced premiumization trend: Price hikes
and enhanced hardware are driving spending among a core demographic of high-value users,
sustaining late-cycle console sales. At the same time, modest growth in the PC/console user base
and intensifying focus on multiplatform content distribution are further challenging the viability of
closed, single-platform ecosystems.
VC ACTIVIT Y
10: “Nintendo Can Now Flex Its Pricing Power With Switch 2,” Reuters, Hudson Lockett, Augus t 3, 2025.
7: “Japan Fair Trade Commission Proposes Guidelines for Apple and Google to Fully Open Up Smartphone Operating System Features (Google translation),”
Nikkei, May 1 5, 2025.
8: “How Did the Global Games Market Reach $182.7b in 2024—and What’s Next?” Newzoo, Michiel Buijsman, June 24, 2025.
9: “Mobile Gaming’s $4.1 Billion Reboot,” Superjoost Playlist, Substack, Joost van Dreunen, May 28, 2025.
Q2 2025 Gaming VC Trends

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VC ACTIVIT Y
Source: PitchBook • Geography: Global • As of June 30, 2025
Q2 2025 gaming VC deal activity by segment
$82.6$261.5 $512.6 $28.3$19.6
11
52
39
47
Access ContentDevelop\bent ExperienceOperations
Deal value ($M) Deal count
Source: PitchBook • Geography: Global • As of June 30, 2025
Median gaming VC deal value ($M) by stage
Pre-seed/seed Early-stage VC Late-stage VC
$4.0$6.3
$ \b. 0
$5.6
$5.0
$3.3
$0$2
$4 $6
$8
2015
2016 201\b2018 20192020 20212022 20232024 2025
Source: PitchBook • Geography: Global • As of June 30, 2025
Trailing 12-month (TTM) gaming VC deal activity by segment
$416.6
$ 3 , 24 0.7 $2,440.6 $350.7
$153.1
57
278
157
3436
Access ContentDevelo\bment Ex\berienceO\berations
Deal value ($M) Deal count
Source: PitchBook • Geography: Global • As of June 30, 2025
Median gaming VC pre-money valuation ($M) by stage
$19. 2
$15.0
$49.0
$50.0
$40.4
$42.8
$0
$20
$40 $60
Pre-seed/seed Early-stage\bVC Late-stage\bVC
2015
2016 20172018 20192020 20212022 202320242025
Q2 2025 Gaming VC Trends

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Source: PitchBook • Geography: Global • As of June 30, 2025
Count of unique VC investors in game content developers
1,129330
0
500
1,000 1,500
2,0002,500
2015 2016 20172018 20192020 20212022 202320242025
Source: PitchBook • Geography: Global • As of June 30, 2025
VC deal activity with CVC investor participation as a share of all game
content developer VC deal activity
82.3%
29.1%
51.6%
34.4%
0%
10%
20% 30%
40% 50%
60% 70%
80% 90%
2015
2016 20172018 20192020 20212022 202320242025
Deal value Deal count
VC ACTIVIT Y
Q2 2025 Gaming VC Trends

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VC ACTIVIT Y
Key gaming early-stage VC deals in Q2 2025
Company Close date Category Deal value ($M) Post-money valuation ($M) Lead investor(s) Valuation step-up
Hedra April 29 Developer tools $32.0 $ 169.0 Andreessen Horowitz 2.0x
Camp Network April 29 Developer tools $25.0 N /A 1kx, Blockchain Capital N /A
Freestyle Chess June 3 Games & platforms $20.0 N /A N /A N /A
Sett May 7 Monetization & financing $15.0 N /A Bessemer Venture Partners N /A
SpAItial May 26 Developer tools $14.4 $59.7 Earlybird Venture Capital N /A
Dynasty Studios June 6 Publishers, developers & studios $14.0 N /A N /A N /A
Cartwheel May 15 Developer tools $10.0 $39.7 Craf t Ventures 1.7x
Latent Technology June 5 Developer tools $8.0 N /A AlbionVC, Spark Capital N /A
MagicBlock Labs Ap ril 24 Game engine $ 7. 5 N /A Faction Ventures N /A
Fuse Games May 7 Publishers, developers & studios $ 7. 0 N /A Griffin Gaming Partners N /A
Source: PitchBook • Geography: Global • As of June 30, 2025
Q2 2025 Gaming VC Trends

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VC ACTIVIT Y
Key gaming VC exits in Q2 2025
Company Close date Category Exit value ($M) Post-money
valuation ($M) Exit type Acquirer
Mech June 9 Games & platforms N /A N /A Acquisition Zelgor
Yeebet Gaming May 19 Gambling $20.0 $20.0 Acquisition 0MS Group, Askmebet, X2 Dynamic
Chibi Clash May 15 Games & platforms N /A N /A Acquisition Scrypted
Kroma Network May 12 Developer tools N /A N /A Acquisition zkCandy
Ludo May 8 Monetization & financing N /A N /A Acquisition Xsolla
Supersocial May 1 Publishers, developers & studios N /A N /A Acquisition Super League Gaming
Generation Esports April 18 Esports $2.8 $2.8 Acquisition PlayVS
Supercent April 16 Publishers, developers & studios $123.4 $ 1 3 7. 1 Buyout MC Partners
Loci April 2 Developer tools N /A N /A Acquisition Epic Games
Elumia April 1 Games & platforms N /A N /A Acquisition Triumph Games
Source: PitchBook • Geography: Global • As of June 30, 2025
Q2 2025 Gaming VC Trends

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Gaming VC deal summary
Quarterly activity Trailing 12-month activity
Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2023-Q2 2024 Q3 2024-Q2 2025
Deal count 195 165 145 140 113 762 563
QoQ change -14.8% -15.4% -12.1% -3.4% -19.3% N /A -26 .1%
Share of total VC 1.9% 1.7% 1.5% 1.4% 1.3% 1.8% 1.5%
Deal value ($B) $1.7 $3.6 $1.3 $5.4 $0.9 $5.6 $11.2
QoQ change 12.1% 110.5% -65.2% 329.9% -83.3% N /A 100.8%
Share of total VC 0.0% 1.7% 1.5% 1.4% 1.3% 1.8% 1.5%
Exit count 15 17 13 11 11 47 52
Public listings 13 16 10 9 10 35 45
Acquisitions 1 0 3 1 1 9 5
Buyouts 1 1 0 1 0 3 2
Source: PitchBook • Geography: Global • As of June 30, 2025
Q2 2025 Gaming VC Trends

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