Konvoy Ventures

New World for Gaming Startups

The gaming industry entered 2023 facing a complex, challenging environment characterized by macroeconomic instability, the decline of Web3, and the long-term impact of IDFA deprecation.

• Late-stage gaming investment has plummeted, with Series B and Series C deal volumes dropping by 47% and 67% respectively, while Seed-stage activity remains relatively stable year-over-year.
• Investors anticipate a difficult funding environment for private markets through Q2 or Q3 of 2024, advising startups to extend their runway to avoid fundraising until at least 2025.
• Generative AI is viewed as a transformative tool for game development that can significantly reduce production costs by automating repetitive content creation tasks like texture generation and paint-overs.