Surge in Gaming Investments: Q124 VC Roundup

Venture capital investment in the gaming industry is experiencing significant growth, with a surge in both funding and deal volume. Konvoy Ventures, a venture capital firm specializing in the gaming industry, reports that gaming VC funding reached $594 million in the first quarter of 2024, a 94% increase from the previous quarter. Deal volume also rose by 28%, with 124 deals completed. Konvoy predicts that the gaming market is projected to reach $225 billion by 2029, up from $189 billion in 2023.

The Web3 industry is also being driven by blockchain games. In the first quarter of 2024, Web3 games accounted for 30% of all DApp activity, attracting 2.1 million active wallets daily, according to DappRadar. During this period, Polygon drew in over 1.1 million new wallets, a 429% increase from the previous quarter. Venture capital firms are gearing up to keep up with this bullish trend. In April, notable venture capital firms like Andreessen Horowitz, Paradigm, and Pantera Capital raised funds for investment.

In April, several startups in the gaming industry raised capital. Laser Digital led a $5 million investment in Tevaera, a gaming firm. The funding will support the development of a gaming ecosystem utilizing zkSync’s ZK Stack. Tevaera has also expanded its community to include over 850,000 Soulbound Gamers from more than 100 countries over the last year.

Independent game studio AVALON secured $10 million in a funding round co-led by BITKRAFT Ventures and HASHED. The investment will fund the development of their debut game, also named AVALON, a multiplayer game that allows players to retain their assets and progress while traversing various worlds.

Uncharted, a company aiming to create a GameFi ecosystem, raised $1.7 million in seed funding. The funding round was led by Shima Capital, and the company plans to release “Gangster Arena 2” and other projects in the future.

Venture capital firm Contango Digital Assets announced the initial close of the Contango Blockchain x AI Fund, raising $5 million. The fund aims to invest up to $10 million in North American seed round companies at the intersection of blockchain and artificial intelligence.

Binance Labs, the venture capital arm of Binance, made an undisclosed investment in Movement Labs, a blockchain development company. Movement Labs recently closed a $38 million Series A funding round and is focused on building an ecosystem of Modular Move-based blockchains.

Venture capital investment in the gaming industry is on the rise, fueled by the growth of Web3 games and the bullish market projections. Startups in the industry are attracting significant funding to support the development of gaming ecosystems, debut games, and innovative technologies at the intersection of blockchain and artificial intelligence.

2 thoughts on “Surge in Gaming Investments: Q124 VC Roundup

  1. The gaming industry is so oversaturated already. I don’t see how any of these startups will stand out. 🙄

  2. I bet most of these startups will fail within a year and the investors will lose their money

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