InvestGame: Gaming Market investment activity in Q3 2023
The situation is still bad, but there are signs of hope.
This year, at the current moment, has the lowest business activity in the last 3 years.
Private Investments
By the end of the first three quarters of 2023, the volume of private capital raised amounted to $2.3 billion. This is 4 times less than the average in 2021-2022.
The number of deals also decreased by 23%.
Early-stage deals were less affected by the crisis. In the first 3 quarters of this year, there were 110 deals (compared to 80 in 2022) - totaling $400 million (compared to $6.41 billion in 2022).
It became more challenging at later stages, with fewer follow-up rounds due to unclear exit prospects. In the first 3 quarters, there were 8 deals (compared to 13 in 2022) totaling $300 million (compared to $745 million in 2022).
Despite the negative picture, business activity has returned to pre-COVID levels. There is hope for future growth.
M&A
In the first three quarters of 2023, the total volume of M&A deals amounted to $8.5 billion. This is 3.8 times less than the average in 2021-2022.
Three deals contributed more than 75% of the total volume - the acquisition of Scopely ($4.9 billion), Rovio ($0.8 billion), and Techland (amount undisclosed).
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The deal between Microsoft and Activision Blizzard for $68.7 billion, which closed in October (4th quarter), is not included in the statistics.
Public Offerings
Excluding the $1.5 billion debt refinancing of AppLovin, the volume of public offerings in the first three quarters of 2023 fell by 29%.
High-interest rates, the poor performance of companies that went public, low valuations, and the crisis make public offerings unpopular options for companies.
Investments in AI
In the third quarter of 2023, there was a significant increase in investments in AI startups. 21 deals were made totaling $268.1 million - more than the first half of this year.
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