Gaming is all around us these days, and you’ve likely played at least one mobile game at some point in your life.
It's no surprise that the video game industry has experienced rapid growth in recent decades, evolving into a multi-billion dollar market that draws significant investment.
As more people enjoy gaming, investing in this exciting sector is becoming more popular.
Factors like the rise of esports, AI-VR, and mobile gaming are driving this growth, making gaming a smart investment choice.
At Konvoy, we are a venture capital firm that sees the potential and benefits of gaming.
We created this guide to help you understand how to start investing on gaming.
Before learning how to start investing on gaming, it's important to understand the different parts of the gaming industry.
This industry consists of several key segments, revenue streams, and major trends that collectively contribute to its growth.
The gaming industry is divided into various segments, including game types, infrastructure, as well as tools and platforms.
AAA games are high-budget projects in the gaming industry.
Well-known companies like Ubisoft make them and require a lot of resources.
Developing an AAA game can take several years and involves large teams, but the payoffs can be considerable if the game does well and becomes popular.
Indie games are made by independent developers, often small teams or individuals.
They usually cost less than big-budget AAA games, which makes them easier for more people to buy.
With billions of smartphone users around the world, mobile games can reach many different types of players.
They often use a model called "freemium," which means players can buy extra items, upgrades, or more content.
Esports tournaments attract professional teams and players. They compete for cash prizes and recognition.
Major events like The International (Dota 2) and the League of Legends World Championship draw millions of viewers.
In video games, there are several ways to get revenue:
Several trends are shaping the future of gaming:
Video games are an exciting investment option. You can invest in different ways:
Invest in well-known gaming companies like Sony, Nintendo, Tencent, Ubisoft, and EA. You'll gain access to established companies.
The risks include market changes and reliance on new game releases, while you can earn money from dividends and value growth.
Consider gaming-focused ETFs (Exchange-Traded Funds) and Index Funds, such as ESPO and HERO.
These provide a mix of investments, spreading risk and allowing for a hands-off investment approach.
You can invest in early-stage gaming companies through venture capital or become an angel investor.
This option has a higher risk but offers the chance for big returns.
Look at companies that supply important tech, like game engines (Unity, Unreal), middleware, and cloud gaming services.
These companies have steady earnings and can grow with the industry.
Use platforms like Fig, Kickstarter, and Republic to support specific game projects.
This could bring big rewards if the game does well, but it also has risks like delays and failures.
When learning how to start investing on gaming, it's common to encounter pitfalls.
Fortunately, here you will learn tips to avoid them:
Just as founders seek feedback when raising venture capital, talk to gaming investors, studios, and industry experts to get helpful insights. This is not investment advice.
How to start investing on gaming takes practice and dedication.
Always do your research to level up your investment game.
To stay updated on industry happenings, consider subscribing to the best gaming newsletters, including ours, right here.
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