Funding for gaming startups dropped off in Q4 2024 | Konvoy
Jan 22, 2025 - venturebeat.com
Konvoy's latest Gaming Industry Report for Q4 2024 highlights a significant slowdown in gaming-related funding, with venture capital investments dropping to $286 million, marking the lowest funding quarter in over five years and a 47% decline quarter-over-quarter. The report notes a decrease in both growth-stage and early-stage funding, with only 83 VC deals, a 25% QoQ decline. Additionally, the graduation rate of gaming startups from seed-stage to Series A has decreased, with only 11.5% achieving this milestone since Q1 2018, and a further drop to 4% for those raising seed funding since Q4 2021.
The report also observes a decline in funding for AI-related gaming startups, from 22% in Q3 to 10% in Q4. Other insights include sales comparisons of the Nintendo Switch, PlayStation 5, and Xbox Series X/S, and increased scrutiny on gaming companies regarding child protection measures. The full report, which includes regional insights, is available on Konvoy's website.
Key takeaways:
The games industry is expected to reach $188 billion in 2024, with projected growth to $223 billion by 2029.
Q4 2024 saw a significant decline in gaming venture capital funding, with $286 million raised, marking a 47% quarter-over-quarter decrease.
Only 11.5% of gaming startups that raised seed funding since Q1 2018 have advanced to Series A, with a decline to 4% for those since Q4 2021.
Funding for AI-related gaming startups decreased to 10% in Q4 2024, down from 22% in Q3.
