TLDR:
- Funding for video games has decreased in 2024, leading to difficulty in securing investments.
- The Games Fund is seeking studios that can deliver frequent releases and have franchise potential.
Article Summary:
Funding for video games has declined in 2024 as investors and publishers are being more cautious with their investments. VC firms like The Games Fund are still looking to invest in studios that can deliver consistent releases and have the potential for franchising. The Games Fund co-founders Maria Kochmola and Ilia Eremeev emphasize the importance of efficiency and franchise potential in studios they choose to fund.
Eremeev and Kochmola are interested in studios that can show a return on investment over a long period of time. They are currently focusing on games with budgets ranging from $5 million to $15 million, particularly in the “double A” game category. The Games Fund allocates about half of its capital towards free-to-play mobile games, while the rest goes towards PC, console, and cross-platform titles.
The Games Fund is looking for studios that can have multiple lines of game production and release games on a regular schedule, rather than focusing on one game at a time. The fund managers are interested in supporting underdogs and overlooked founders, recognizing the value of premium game development in the industry.
While investors are currently cautious, The Games Fund believes that conditions will improve for early-stage companies in the video game industry. Eremeev and Kochmola are optimistic about the future and hope to support developers in producing successful and profitable games.
