According to the latest report published by Konvoy Ventures, the gaming industry’s investment capital increased by 94% in the first quarter of 2024.
Although this is not a very good growth rate, for the challenging gaming industry, this is clearly a positive signal. Konvoy points out that this is just an upward sign, the best news in the gaming industry in a long time.
The amount of investment in the gaming industry in the fourth quarter of 2023 decreased by 83% compared to the same period in 2022. The level of investment and finance in the first quarter of this year decreased by 28% compared to the same period in 2022 but is still a significant improvement index. compared to the fourth quarter of last year. The report shows that the number of global gamers in 2023 is 3.381 billion, with more than half (53%) distributed in the Asia-Pacific market, followed by MENA (Middle East and Africa), Europe, Latin America and North America.
The performance of the private games market was strong in the first quarter, primarily driven by Disney’s $1.5 billion investment in Epic Games, which is primarily intended to create a complete Disney game universe. Connected to Fortnite. After bottoming out in the final quarter of 2023, the games investment market has now recovered to levels a year ago and deal volume has reached Q4 2020 levels. In the first quarter, investment in the gaming industry reached $594 million, primarily driven by several large deals, such as Build A Rocket Boy ($110 million) and Second Dinner ($100 million). USD).
In the first quarter, the number of companies raising capital reached 124, an increase of 28% compared to the previous quarter. About 23% of the deals accounted for 80% of the total funding announced, which means the investment environment is efficiently allocated.
Josh Chapman, managing partner at Konvoy, said: “The games investment environment has now shifted to a different state. We believe the worst of this correction cycle is over and 2024 and 2025 will be less risky. M&A activity, attractive IPO next year and continued long-term growth in the gaming industry.” Overall, public reports from Newzoo and other third-party companies predict that the games market will grow 2.9% to $189.3 billion in 2024, building on $184 billion the previous year. . Public-market gaming electronic exchange-traded funds (ETFs) rose 4% to 12%, compared with 10.7% for the S&P 500.
Convoy and other public reports predicted that the gaming industry will grow at an annual rate of 3.5% to reach $225 billion by 2029, a modest level compared to the growth we have seen in the past.
Follow Unblocked game news for more information about games/proxy……
