The global gaming market reached $189.3 billion in Q2 2024, representing a 2.9% year-over-year growth rate.
See it on page 3Venture capital funding for gaming declined 20% quarter-over-quarter to $492 million, with 90% of capital concentrated in early-stage seed and pre-Series A rounds.
See it on page 21M&A volume in the gaming sector has slowed, decreasing 17% year-over-year as investors prioritize building IP and technology foundations over late-stage scaling.
See it on page 10Despite lower quarterly deal counts, private-market funding for the year has already surpassed the total recorded for the full year of 2023.
See it on page 4Konvoy Capital manages $260 million across three funds, with a strategy that allocates 40% of its 51 investments outside of North America to mitigate regional risk.
See it on page 2Public gaming ETFs have seen year-to-date gains between 7% and 20%, though they have generally trailed the S&P 500's 15.1% growth over the same period.
See it on page 9**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)
