Gaming drew $1.1 billion in VC funding in the second quarter of 2023 | Pocket

Video Game Makers Raise $1.1 Billion in VC Funding in Q2 2022

According to a recent report by Pitchbook, video game makers secured $1.1 billion in venture capital funding during the second quarter of 2022. This represents an average deal value of $10 million across 110 deals. Compared to the previous quarter, deal value increased by 12.1%, rising from $1 billion in Q1. However, deal volume experienced a 29% decrease, from 155 deals in Q1 to 110 deals in Q2.

While both deal value and volume declined significantly year-on-year, there were notable VC deals that took place in Q2. Coreweave, a cloud provider, raised $421 million in a Series B round, while Anzu, an in-game advertising platform, raised $48 million in a Series B. Triumph Labs, a startup that enables game developers to implement real-money tournaments in their mobile games, was also successful in raising $10.2 million in a Series A funding round, bringing their total raised to $14 million and their valuation to $51.2 million. Pitchbook estimates a 92% probability of success upon their exit.

Venture Capital Deals in Q2 2022

  • Late-stage deals accounted for $611 million in deal value, representing 55% of the total.
  • Early-stage, angel, and seed deals made up a combined 71.8% of VC deals in terms of volume, indicating investor optimism for the industry’s long-term growth potential.

Throughout the first half of 2023, North America has outperformed other regions, with a combined activity worth $1.3 billion, compared to $400 million in Asia and $300 million in Europe.

For more information about investments and M&A activity in Q1 2023, read the report by DDM Agency.