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Gaming investors look to content developers for outsize returns
One of Pitchbook’s newest coverage areas, gaming startups saw deal value tick up slightly in Q1 while broader economic trends continued to dampen dealmaking. Meanwhile, the vertical is the latest to embrace generative AI and what it could mean for content creation.
Key takeaways:
- Gaming startups raised $1.1 billion in Q1, an increase of 10.7% QoQ. Deal count was also up 20.7%, but when compared to 2022, the picture is less than stellar.
- Deal value and count declined 75.7% and 56.4%, respectively, YoY as consumer spending slowed and the pandemic-driven rush came to a halt.
- While exit value doubled QoQ to reach $200 million across nine deals, exit activity still remains significantly below historic highs.
- Emerging opportunities for investors include protecting game developers from cyber threats and using generative AI for content creation.
Table of contents
| Vertical overview | 2 |
| Q1 2023 timeline | 5 |
| Gaming landscape | 6 |
| Gaming VC ecosystem market map | 7 |
| VC activity | 8 |
| Emerging opportunities | 17 |
| Security | 18 |
| Generative AI | 20 |
| Select company highlights | 23 |
| Solsten | 24 |
| Stardust | 25 |
| Believer Entertainment | 26 |
