Konvoy Ventures: VC funding in gaming dropped by 38% in Q2 2023
However, company believes that the gaming market will continue to grow fast by 2027 at least.
The company believes that in 2023 the gaming market will grow to $201B and will continue growth with an 8.94% CAGR.
Funding in different stages in 2022 (without M&A) in the gaming industry was $14.048B. In the first two quarters of 2023, funding only reached $1.443B.
VC funding dropped by 38% in Q2 2023 compared to the first quarter. The volume of early stages deals is dropping 5th quarter straight.
The number of VC deals in Q2 2023 reached its minimum in 3 years. Less was only in Q2 2020.
Gaming ETF started to grow at the beginning of 2023. ESPO got +30.1%; GAMR - +9.7%. We can carefully presume that investors believe in companies’ adaptation to the new market cycle.
Public companies have a significant amount in cash - more than $45B. Activision Blizzard is a leader by this parameter with a $9.2B in cash.
The largest gaming VC deal of Q2 2023 is a Round A from Goals ($20M).
Asia remains the leader in both the number and size of deals in the gaming industry.