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Venture capital spending could be bounced back. An estimated $4.5 billion spent the last quarter.
But it doesn’t look like the game is getting that pie.
Earlier this week, the Empire noted that the VC’s interest could be heading towards a project of real and valuable. This is a symptom of wider changes throughout the landscape thanks to institutional interest in space.
Unfortunately, it doesn’t seem like the game is getting love, even if there is a chance of a full pay rise, from mega trades (over $100 million) to emerging trades (meaning seeds or seeds). Anyway, it’s not yet.
I asked Pitchbook’s Eric Bellomo (a senior analyst at emerging technology) about a pay raise in the game, and he wasn’t very optimistic.
“Trade value has increased significantly, but large deals like Disney/Epic Games have continued to round up the bulging top-line figures, sliding alongside the 2018-2019 figures from 9.5% to 649 deals.
“We still have capital available, but we think the current environment is not a revival, but a new steady state,” he told me.
Some of this is pretty obvious, right? This game sub-sector cost a lot of money, but not much success.
“The enthusiasm has declined significantly as many funded startups have yet to produce breakout hits or venture-scale results. The technology underlying the game is far from the most important factor. Will the game be fun and retained?” Belomo said.
