TLDR:
Early-stage VC games funding hit a 12-month high in Q2 2024, with $492 million invested, but growth and later stage investments are still “very depressed” according to a new report by Konvoy Ventures. Private games funding overall was at $690 million, down from $2.2 billion in Q1 2024.
Article Summary:
Early-stage VC funding for games reached a 12-month high in Q2 2024, totaling $492 million, showing a slight increase from the previous quarter. However, this increase was not enough to lift the industry out of its overall investment slump. The data from the Konvoy Ventures report revealed that the majority of this funding was allocated to early-stage companies, with growth and late-stage investments continuing to face challenges and being described as “very depressed.”
The total private games funding for Q2 was reported at $690 million, a significant decline from the $2.2 billion seen in the previous quarter. It is worth noting that the high figures in Q1 were largely due to Disney’s substantial investment in Epic Games, which heavily skewed the overall numbers.
Despite the increase in early-stage funding, the number of gaming VC deals actually decreased in Q2, with 104 deals recorded. This marked a 22% drop from the previous quarter and a 12% decrease from Q2 2023. The report highlighted that a small percentage of deals made up the majority of the disclosed funding, suggesting a more balanced investment landscape.
Regionally, Asia led the way in both the number of venture deals (39) and funding ($283 million) in Q2. North America followed with 33 deals and $128 million in funding, while Europe recorded 29 deals and $78 million in funding. Notably, funding in Asia reached a 12-month high, while North America saw a 61% decrease in VC investment from the previous quarter.
