TLDR:
Key Points:
- Venture capitalists’ interest in gaming and esports dropped in Q2 2024 after a strong start to the year.
- Venture capital funding of gaming start-ups decreased by 20% quarter-over-quarter.
After a strong start to the year, venture capitalists’ interest in gaming and esports appears to have flagged in the second quarter of 2024. The gaming industry has faced challenges, with the rise of free-to-play games leading to a record-breaking wave of layoffs. Despite this, venture capital funding of game start-ups had increased by 81 percent between Q4 2023 and Q1 2024.
Key takeaways from Konvoy Ventures’ quarterly report on VC investment in the gaming space include:
- Venture capital funding of gaming start-ups decreased to $492 million in Q2 2024, a 20% drop from the previous quarter.
- Early-stage funding in the gaming industry hit a 12-month high in Q2 2024, with the majority of VC funding coming from early-stage funds.
- Asia saw a significant increase in gaming venture capital funding, reflecting investors’ growing awareness of the differences between Eastern and Western markets.
- The gaming market is projected to reach $189 billion by the end of 2024, with a market cap of $225 billion by 2029.
Despite the challenges faced by the gaming industry, Konvoy remains optimistic about its growth potential, attributing the industry’s resilience to the innate desire for play that people have. The report highlights the impact of the COVID-19 pandemic on boosting the gaming industry and driving continued growth.
