vgames Launches $142M Fund to Further Expand into Gaming and Gamification

An Israel-based gaming-focused venture capital fund vgames has raised $142m for its third fund. The first two funds — a $60m initial raise in March 2020 and a $141m second fund in December 2021 — established vgames as one of the leading investors in the gaming industry. This third fund further solidifies its position at the forefront of gaming and gaming-related investments.

Since its launch in 2020, Vgames has invested in 38 companies worldwide. The fund’s portfolio includes two successful mobile gaming studios acquired by Playtika this year companies such as InnPlay Labs ($80m upfront, up to $300m with earn-outs) and SuperPlay (700m upfront, a $50m retention payment, and a potential $1.25B earn-out). It also features Candivore, the creators of Match Masters, one of the best-performing Match-3 games. Other investments include 1047 Games, known for Splitgate, GOAT (founded by former Plarium veterans), Elyzio, 44 Pixels, and AMP.|

Vgames differentiates itself with a content-first investment strategy, prioritizing game development over platform and tech-focused startups. “We invest in teams, content and believe in a data-driven approach,” said Daniel Mironov, partner and game expert at vgames. “Depending on the stage of the company we analyze the genre, metrics if applicable and growth opportunity, and based on that drive our investment decisions. We are seeking for the strongest teams out there, teams that are not afraid to think big and tackle red ocean opportunities. We often get asked whether we invest in Mobile/PC/Consoles. Our answer has been consistent: We have a content-first approach. So, as long as players enjoy playing, as long as there is a strong business model to back it and as long as there’s great potential, we would love to explore.”

As a result of this approach, vgames has often ended up in the top gaming investors in our global gaming deals reports alongside major names like Galaxy Interactive, Andreessen Horowitz (a16z), Makers Fund, BITKRAFT Ventures, PlayVentures, and others. With Fund III, Vgames plans to stick to its flexible investment strategy, moving quickly to back new opportunities and trends. The fund is also committed to helping its portfolio companies grow with tools like non-dilutive financing.