Editing News/April 2024 Investment Recap in Esports and Gaming

{{News
|seo_title=April 2024 Investment Recap in Esports and Gaming
|seo_keywords=Investment
|image=Investment-recap-esports-april 2024.png
|tags=Investment
|date=2024-04-26T12:24:49.000Z
|author=Andura
|category=Business,Investments
|content====== Playtika to Spend $1.2b =====

[[Companies/Playtika|Playtika]], has announced a shift in its strategy. According to recent
investors call it has decided to halt its search and intends to allocate
$1.2b towards mergers and acquisitions (M&A) activities over the
next three years. The current market conditions are considered an
opportunity by the company.

The company stated that "ongoing uncertainty in Israel and
Ukraine" was the reason behind pausing its search for a buyer.
Despite this decision, Playtika reported a revenue of $638m for the
fourth quarter of 2023. The company also stated that they will
continue the pause on new titles.

===== Brain Jar Games Secures $6.7m =====

[[Companies/Brain Jar Games|Brain Jar Games]] has secured $6.7m in its seed funding round. The
studio intends to allocate these funds towards the development of
its inaugural title, Dead As Disco. The funding round was co-led by
Transcend Fund Menlo Ventures, and 1UP Ventures. Notably, Brain
Jar also received investments from former Harmonix COO Chris
Rigopulos, Oculus co-founder Nate Mitchell, and Xsolla president
David Stelzer.

Amy Wu, Menlo Ventures partner, stated “It takes a lot for a new
game entrant to capture players’ attention, and Will Cook with
Brain Jar Games paints such a sharp vision for the game that I
wanted to play it from the first time I heard the pitch. Can’t wait
for this to launch.”

===== GameSquare Reveals The Sale of Complexity Gaming =====

[[Companies/GameSquare Esports|GameSquare Esports]] announced the sale of Complexity Gaming to
Global Esports Properties led by Complexity's founder and CEO
Jason Lake for $10.36m. According to the release GameSquare and
Complexity signed a Membership Interest Purchase Agreement.
GameSquare recently announced the purchase of FaZe Clan. The
company will pay $17m for the merger. GameSquare is the parent
company marketing agency Code Red. FaZe Clan was having
financial troubles last year. The organization was issued a notice by
NASDAQ several times due to extremely low stock prices.
GameSquare CEO Justin Kenna. "The Complexity transaction
follows the December 2023 sale of our Frankly radio assets, as we
continue to optimize our platform ahead of the pending
acquisition of FaZe. Once the acquisition with FaZe closes, which
is expected in the coming weeks, we are excited to get to work
replicating the success we achieved with Complexity at FaZe. We
believe this is a win/win for Complexity, Global Esports,
GameSquare and the global esports leagues where Complexity
and FaZe compete, as many leagues have rules around
ownership of multiple teams. We look forward to rooting for
Complexity and finding ways to continue to work with Jason and
his team."

===== Shift Up Files for IPO =====

Stellar Blade developer [[Companies/Shift Up|Shift Up]] filed for an IPO. Shift Up, on March
5, applied to offer over 58 million shares on the Korea Stock
Exchange. The initial public offering will see 7.25 million shares
available for sale, each with a nominal value of ₩200 ($0.15).
The IPO process is being managed by Korea Investment &
Securities, NH Investment & Securities, and the Seoul branch of JP
Morgan Securities. As of October 2023, Shift Up's market valuation
neared $1.5b. Around this period, WeMade Entertainment divested
2 million of its shares in Shift Up, selling them to Tencent's Aceville
subsidiary for $53.9m. The company also aims to get investment
from Saudi Arabia via the IPO.

===== Saudi Arabia Reveals $120m Fund =====

Saudi Arabia's National Development Fund (NDF) and the Social
Development Bank (SDB) have established two venture funds. The
announcement was made at the LEAP 2024 technology conference
in Riyadh last week, with the funds totaling $120m.
According to release, these funds are part of the Gaming and Esports
Financing Programme, designed to offer equity investments to
gaming and esports companies to support their growth and increase
their contribution to the economy and society.
Saudi Arabia has been making strides within the esports and gaming
industry. The country is aiming to establish itself as the main player in
the esports world. Through Esports World Cup Foundation there will
be more than a 10 tournaments with substantial prize pools.

===== Roar Games Secures $1.5m =====

[[Companies/Roar Games|ROAR Games]] announced today that it has secured a $1.5m investment
from The Games Fund. The funds will be used to develop the first title
of the company Tenet of the Spark, an action game. The game will
feature a boxer gaining abilities through connections with his
ancestors. The company is formed by the core team of Zheeshee.
Artem Shcherbakov, CEO and founder of Roar Games, stated "I'm
delighted to welcome The Games fund as our first investor. We were
impressed by their human approach and willingness to buy into our
team's vision for an experience and an IP which can transcend the
boundaries of gaming."

===== Balancy Secures $700k =====

Balancy has secured $700k in funding led by mobile industry veterans.
The funds will be used to expand Balancy's software platform, aiding
small and mid-size studios in managing and monetizing live service
games. Investors include Max Kamenkov, Radostin Petrov, Sergei
Kovalenko, and Seth Sivak. Balancy was founded in 2022 by Pavel
Ignatov, Andrei Apanasik, and Julia Iljuk, who have 30 years of
combined industry experience.
Pavel Ignatov stated '"We aim to empower promising midsize and
smaller studios to navigate the competition amid a challenging
market and the highest CPI (cost per install) numbers in mobile
history."

===== Behaviour Interactive Acquires Fly Studio =====

[[Companies/Behaviour Interactive|Behaviour Interactive]] has purchased Fly Studio, a multimedia production
company based in Montreal. Established in 1996, Fly Studio has a track
record of creating mixed-media projects for companies like Ubisoft, Cirque
du Soleil, and Toyota. Through this acquisition, Behaviour aims to broaden
its business presence in additional markets. The 25-person team from Fly
Studio will become part of Behaviour's services division.
Dominique Lebel stated "At Behaviour, we see great potential in the
immersive and interactive experiences sector, and adding Fly to our team
will consolidate our place in that market and allow us to bring innovative,
large-scale projects to life."

===== Saber Interactive Sold for $247m =====

[[Companies/Embracer Group|Embracer Group]] AB has agreed to sell certain assets from Saber
Interactive for a total purchase price of $247m. Through this sale Embracer
exited from all operations in Russia. The buyer, Beacon Interactive, is
controlled by Matthew Karch, a co-founder of Saber Interactive.
Lars Wingefors, co-founder and Group CEO of Embracer stated “I am
pleased that we have found a win-win solution for Embracer and the
parts of Saber that now will leave us. This transaction puts both
companies in a stronger position to thrive going forward. Embracer is
now able to discontinue all operations in Russia, according to a previous
board decision, while safeguarding many developer jobs under new
independent ownership. At the same time, we keep key companies,
valuable IPs and future publishing rights. Cash flow is immediately
improved, and we remain committed to reducing net debt."


===== Gamestream Secures €4.5m =====

[[Companies/Gamestream|Gamestream]], a French-based company founded in 2019, has received
investment of €4.5m. The company offers a gaming platform accessible
on PC, TV, and mobile devices. Operating across Europe, Asia, and the
Middle East, Gamestream plans to utilize the investment to grow its
cloud gaming operations.

Ivan Lebeau stated '''"Therefore, the demand for Cloud Gaming is high,
and for just a few euros a month, players can access unlimited
console quality licenses from their computer, tablet or smartphone.
This new fundraising will allow us to further impose this model on the
international scene."'''

===== Reef Creative Group Acquires Stake in Bitmap Bureau =====

[[Companies/Reef Creative Group|Reef Creative Group]] has acquired a 70% stake in the UK-based game
studio Bitmap Bureau. Founded in 2016 and headquartered in
Southhampton, Bitmap Bureau is led by Matthew Cope and Mike
Tucker. The studio has developed games including 88 Heroes, Ninja
Shodown, and Battle Axe. Reef Entertainment, a subsidiary of Reef
Creative Group, is collaborating with Bitmap Bureau on the
development of two undisclosed titles.

Bitmap Bureau technical director Matt Cope stated "'''Working as part of
the Reef Creative Group gives us access to the funding, administration
and publishing support we need to expand, study and concentrate on
making the best retro titles out there for gamers everywhere."
'''
===== Thirdverse Secures $3.3m =====

Thirdverse has secured $3.3m in a funding round. According to reports
the funding round was led by Nissei Capital and VeriServe. The funding
will be allocated towards the development of their upcoming game,
Soul Covenant, and for expanding their studio team. Thirdverse,
established in 2020, operates studios in Japan and the US. Their
portfolio includes games like Altair Breaker, Sword of Gargantua, and
X8.

The company completed its Series D funding round with $11.3m with
this investment. The VR company' X8 surpassed 450,000 downloads
worldwide.

===== Sensor Tower Acquires Data.ai =====

Sensor Tower has acquired mobile marketing firm Data.ai for an
undisclosed amount, a move that may result in layoffs for an
unspecified portion of Data.ai's workforce. According to release, Sensor
Tower intends to leverage Data.ai to enhance its presence in digital
marketing and mobile sectors, as well as to broaden its customer base
and product offerings. Sensor Tower has assured that its platforms will
continue to operate independently without immediate changes for
consumers. The leadership team will also remain unchanged and
oversee both companies.
Sensor Tower CEO Oliver Yeh stated '''"This merger also necessitates
optimising our team structure. We are committed to providing
assistance and resources to our departing colleagues during this
transition."'''


===== Gunzilla Games Secures $30m =====

[[Companies/Gunzilla Games|Gunzilla Games]], a game development studio focusing on Web3
technologies for the PlayStation platform, has disclosed a successful
funding round totaling $30m. Avalanche's Blizzard Fund and CoinFund led
the investment, with additional contributions from Republic Capital and
Morningstar Ventures totaling $10 million in a strategic token round.
Gunzilla Games also mentioned undisclosed equity and validator sales in
their statement.

The funding will primarily be allocated towards expediting the development
and launch of their forthcoming free-to-play battle game titled "Off the
Grid." Additionally, Gunzilla Games is working on establishing an on-chain
marketplace for other titles.

Thunderful to Sell Headup

[[Companies/Thunderful Group|Thunderful Group]] has revealed plans to sell Headup Games in a deal
worth €500k, thereby restoring ownership of the company to its initial
founder. Under this agreement, ownership of Headup Games will
transition from Thunderful to Microcuts Holding, a legal entity owned by
the founder of Headup, Dieter Schoeller. The decision to divest began
undergoing assessment as early as November 2023, aligning with
Thunderful Group's revised strategy, which emphasizes publishing fewer
but more substantial titles.

As part of the agreement, Thunderful will be entitled to a revenue share
of up to €300k from a forthcoming undisclosed title. Although the deal
has been concluded between the involved parties, its completion is
dependent on factors. These include obtaining shareholder approval
and revising three intellectual property-related contracts.


===== Popularium Secures $2m =====

[[Companies/Popularium|Popularium]], a gaming studio founded by industry veterans including
Richard Garfield, Jon Bankard, and Arka Ray, has successfully closed its
seed funding round, securing $2 million in investments.
Led by Richard Garfield, the creator of Magic: The Gathering, along with
Jon Bankard, a former developer for Hearthstone and World of Warcraft,
and Arka Ray, previously a manager at Xbox Live, Popularium boasts a
team with extensive experience in the gaming industry. The studio's
debut title, Chaos Agents, is currently in development an autobattler
royale.

Richard Garfield stated '''"Getting everything right in a completely new
type of game is challenging, and the experience of Popularium, and the
support of early investors and members of our community have been
vital - there is no amount of planning that can replace the exciting
journey that trial and iteration provides. This support will allow us to
launch a public Alpha as soon as this summer and bring Chaos Agent to
thousands more fans."'''

===== Lil Snack Secures $3m Investment =====

[[Companies/Lil Snack|Lil Snack]], has secured $3.1 million in funding for its ventures. The funding
round was led by A16z Games Speedrun, Powerhouse Capital, Lerer Hippeau,
and Waverley Capital. With this financial backing, Berman and Chen aim to
advance their AI-powered pop culture trivia game platform. Notably, Lil
Snack's innovative approach incorporates generative art for visual puzzles,
alongside custom general-purpose technologies for game modes and general
engineering tasks.

Lil Snack is revolutionizing the gaming industry by releasing new games daily,
synchronizing them with the latest pop culture trends. Leveraging advanced
AI tools, Lil Snack is able to supercharge its game production process,
ensuring that each release remains relevant and engaging for players.

===== A16Z Games Invests $75m =====

[[Companies/A16Z Games|A16Z Games]] has committed $75m to its third annual Speedrun Tech x
Games accelerator. The program, spanning 12 weeks, targets early-stage
startups lacking funding and will take place in Los Angeles from July 29
to October 20. In addition to its initial investment in pre-seed startups,
A16Z plans to boost its individual investment in each chosen company to
$750k.

Officials stated '''"Our Speedrun program not only provides capital
support, but also a team of operators and partners who have worked
across the games industry and can equip them with the knowledge
that help them go from zero to launch."'''

===== Midas Games Secures $1m =====

Mobile developer [[Companies/Midas Games|Midas Games]] has secured $1 million in funding. The
funding round was led by Ludus Ventures. The funding will assist in
supporting the studio's development efforts and the release of its inaugural
titles in the latter half of 2024. The founders of the studio are Hikmet Duran,
Mert Ulutaş, Emre Öztürk, Selçuk Korateş, Fatih Karadeniz and İlkim Ülgen.
CEO Selçuk Korateş stated "Ludus helps us in every aspect, ensuring that
our focus remains solely on game development and adding momentum to
our business."

Mehmet Ayan stated '''"Midas Games is one of the most important factors in
the Turkish games industry's prominence in the international market,
strengthening its young and dynamic team structure with experienced
members that we had the opportunity to work within different projects in
previous years."'''

===== Bitkraft Ventures Reveals New Fund =====

[[Companies/Bitkraft Ventures|Bitkraft Ventures]] has successfully secured $275 million for its third fund
dedicated to early-stage investments in gaming and interactive media
companies. This latest fund, Bitkraft Venture Fund 3, follows the company's
two previous early-stage equity venture funds. It will maintain the focus on
investing in studios, platforms, and technology globally within the gaming
and interactive media sectors, particularly at the seed and Series A stages.
The new fund will bolster Bitkraft Ventures' total assets under management
to surpass $1 billion. Notably, this announcement comes shortly after the
unveiling of Laton Ventures' $35 million game VC fund, marking the second
significant development in the gaming investment landscape within a week.
Jens Hilgers stated '''“That’s probably the thing I’m most excited about with
Bitkraft. Culture is very easy to destroy. But it takes a very long time to
build. And in our business, trust, integrity and being good people, besides
being good investors, and making the right decision fundamentally, is
incredibly important.”'''
}}