TLDR:
- Private funding for games in H1 2024 totals $2.89 billion, with a 9% YoY decline excluding Disney’s investment into Epic Games.
- VC funding for games is down 20% in Q2 2024 compared to Q1 2024 and 7% from Q2 2023.
In the first half of 2024, private funding for games reached $2.89 billion, exceeding 2023’s annual total but showing a 9% year-over-year decline excluding Disney’s investment into Epic Games. VC funding for games is also on the decline, with venture capital firms investing $492 million in Q2 2024, down 20% from Q1 2024 and 7% from Q2 2023. The number of VC deals closed in Q2 2024 was down 22% from Q1 and 12% from the same quarter last year.
The pace of decline in both private funding and VC funding is slowing, with early-stage companies receiving the majority of investments. Konvoy Ventures highlighted that 22% of deals accounted for 80% of disclosed venture capital in 2024, showing a healthier distribution of funding in the market. However, growth and late VC funding rounds are uncommon in 2024, with 89% of games VC funding placements going to early-stage startups.
a16z Games and Bitkraft Ventures raised a combined $875 million in the last quarter to invest in early-stage games startups. The full Games Industry Report by Konvoy Ventures includes regional data and key trends shaping the market.
