Value Chain in Gaming VC

Gaming VCs: Late Stage & Early Stage

Late stage investing (Series B+) is getting incredibly competitive across the venture capital landscape. This is especially true in video gaming because non-endemic later stage firms are keenly aware that this industry has such strong macro headwinds, a heavy consumer component, and it sits at the unique intersection of entertainment + cutting edge technology. The recent exits of platform/tech companies like Unity ($27B), Roblox ($39B), or Skillz ($6B) are highlighting the returns that are possible in gaming.

This competitive dynamic at late stage is something we see here at Konvoy on a daily basis as an active investor in this space. Yet it is further validated by the global venture data that Crunchbase just reported.

In Q1 of 2021, there was an all time record of $125B in global venture investments. This was a 50% increase quarter over quarter and was 94% higher year over year (Crunchbase). The most notable increase was in late stage venture (see the chart above), which was not surprising.

Back in February, we were thrilled to have Konvoy highlighted as one of the top 15 investment firms in video gaming (VentureBeat). This cohort of 15 investment groups manage an estimated $1.5B in AUM (increasing by the quarter). We were mentioned in Dean Takahashi’s article alongside a fantastic group of investors, almost all of whom we are co-investors with across the Konvoy portfolio (Fund I + Fund II).

Within the gaming investor landscape, some of these firms are going more late stage while others are staying at early stage. This is creating a very strategic and value-add environment for founders who want to raise an Angel > Seed > Series A > Series B > Series C in the gaming industry. Each one of these stages can be led by these endemic investment groups who all focus on this space.

Five years ago, this value chain across the investment landscape was nowhere near where it is today. Fast forward to 2021, and the cohort of value-add investors in gaming is becoming much more fleshed out.

This is an exciting time for Konvoy to be an endemic investor in video gaming. I’m thrilled to see this type of progress in such a short period of time.