Investments·Updated Mar 17, 2026 by Drake Star Partners
M&A activity surged in Q3 2023, highlighted by a $1.72 billion acquisition offer for Kahoot! and strategic moves from major players including Tencent, Playtika, and Take-Two.
Private financing remained resilient with $1 billion raised across 185 deals, 85 percent of which targeted early-stage ventures.
The Drake Star Gaming Index returned 6.6 percent in the first nine months of 2023, underperforming the S&P 500's 11.7 percent return.
Significant venture capital continues to flow into the sector, with notable funding rounds secured by Second Dinner, Story Protocol, and Inworld AI.
Industry projections for 2024 anticipate increased M&A activity driven by strategic incumbent acquisitions, potential divestitures, and heightened private equity participation.
M&A activity surged in Q3 2023, highlighted by a $1.72 billion acquisition offer for Kahoot! and strategic moves from major players including Tencent, Playtika, and Take-Two.
Private financing remained resilient with $1 billion raised across 185 deals, 85 percent of which targeted early-stage ventures.
The Drake Star Gaming Index returned 6.6 percent in the first nine months of 2023, underperforming the S&P 500's 11.7 percent return.
Significant venture capital continues to flow into the sector, with notable funding rounds secured by Second Dinner, Story Protocol, and Inworld AI.
Industry projections for 2024 anticipate increased M&A activity driven by strategic incumbent acquisitions, potential divestitures, and heightened private equity participation.