Gaming Industry Report: Q2 2024

Gaming Industry Report – Q2 2024 – Executive Summary

1. Market Overview & Public‑Equity Performance | Metric | Q2 2024 | YoY / QoQ Change | |--------|---------|-----------------| | Global gaming market size | $189.3 b | +2.9 % YoY | | Public gaming ETFs vs. S&P 500 | ETFs up 7‑20 % YTD | S&P 500 up 15.1 % YTD | | Key takeaway | The sector continues to expand modestly, out‑performing many traditional equities, but the outperformance gap varies widely across individual ETFs. |

2. Venture‑Capital Activity | Aspect | Q2 2024 | Trend | |--------|---------|-------| | Total VC funding | $492 m | ‑20 % QoQ | | Number of rounds | 574 | Slight decline | | Deal‑stage mix | ≈90 % of capital in early‑stage (seed‑pre‑Series A) | Late‑stage & growth rounds remain scarce | | M&A volume | Down 17 % YoY | Consolidation slows | | Private‑market funding | Already exceeds full‑year 2023 total | Indicates strong pipeline despite lower deal count |

Interpretation: Investors are concentrating on the “frontier” segment—pre‑seed to Series A—where they can secure larger ownership stakes at lower valuations. The dip in late‑stage financing and M&A suggests a cautious macro environment (inflation, higher cost of capital) and a shift toward building IP and technology foundations before scaling.

3. Konvoy Capital – Fund III Snapshot | Item | Detail | |------|--------| | Assets under management (AUM) | $260 m across three funds | | Investment count | 51 total; 40 % outside North America | | Geographic focus | North America, Europe, Asia, Brazil (see event list) | | Deal focus | Frontier gaming technologies, pre‑seed → Series A, $1‑5 m checks | | Key personnel | Managing Partners: Josh Chapman, Jason Chapman, Jackson Vaughan | | Support team | Dedicated investment & platform professionals | | Top newsletters | • “Gaming IPO Watch List” <br>• “Mobile Gaming Post‑IDFA Deprecation” <br>• (3 additional curated newsletters) | | Strategic events (Q2 2024) | 15 industry conferences & expos (Jan‑Nov) across NA, EU, APAC, Brazil – covering gaming, media, and tech. |

Strategic Implications for Konvoy Diversified pipeline: 40 % of investments outside the U.S. mitigates regional risk and taps high‑growth markets (e.g., Southeast Asia, Brazil). Frontier focus: Aligns with the broader VC shift toward early‑stage, high‑potential tech (cloud gaming, AI‑driven personalization, blockchain‑based economies). Thought‑leadership: Curated newsletters and event participation reinforce Konvoy’s brand as a go‑to source for emerging gaming trends, especially around regulatory changes (e.g., IDFA deprecation)