Play Ventures, a leading venture capital firm in the gaming industry, has announced that its debut Fund I has generated a remarkable 150% return for investors in less than four years. The company’s net internal rate of return stands at an impressive 66%, surpassing the target of 30% commonly seen in early stage venture capital funds.
Since its establishment in 2019, Play Ventures has invested in over 100 gaming companies, ranging from studios to service providers. The company has also enjoyed successful exits, such as the acquisition of Reworks by Playtika for $600 million in 2021, and the acquisition of Savage Game Studios by PlayStation Studios last year.
Currently, Play Ventures Fund I comprises 20 companies, including Gamefam and MPL, and has raised a total of $40 million to date. With six years remaining in the fund’s lifetime, the company anticipates further growth in the years to come.
A Recipe for Success
Play Ventures attributes its success to several key factors. First, the company emphasizes its pragmatic and grounded approach, prioritizing transparency with both investors and game makers. It firmly believes that game makers are uniquely qualified to provide guidance in game creation. Each of the company’s partners has valuable experience creating their own gaming startups, leveraging this expertise to identify and support “industry-defining, rule-bending entrepreneurs” who excel in the competitive gaming landscape.
One notable founding partner of Play Ventures is Henric Suuronen, who has previously held leadership roles at prominent gaming companies such as Digital Chocolate, Nonstop Games, and King. Suuronen aptly points out, “Watching 100 hours of movies does not put you in a position to be able to advise Christopher Nolan. Likewise playing 100 games does not enable you to advise a skilled game creator in their project.”
Anton Backman, Chief Financial Officer of Play Ventures, was a featured speaker at last year’s Pocket Gamer Connects Helsinki event. The event is set to return to Helsinki next month.