Vgames raised $142 million for its third fund to proceed investing in gifted gaming groups internationally.
Led by Eitan Reisel and Daniel Mironov, the fund (which spells its identify Vgames) will put money into recreation studios throughout totally different levels, backing gifted founders and supporting them as they develop.
“The third fund super exciting, as this was only an idea five years ago,” mentioned Reisel, managing director, in an interview with GamesBeat.
The earlier funds have been $60 million in 2020 and $141 million in 2021.
“We are proud to be among the leading investors in gaming globally. Privileged to back talented founders from early days to later stages. Vgames has led early stage investments in companies while also leading mega rounds in some of its portfolio” mentioned Reisel.
Because the launch of Vgames again in March 2020, the fund has invested in 38 firms globally, making it one of the vital lively recreation funds on the earth. It additionally invested in “gamification” offers.
“We are on top of the charts in performance,” Reisel mentioned.
Vgames brand
Notable investments embrace InnPlay Labs (acquired by Playtika for as much as $300 million), SuperPlay (acquired by Playtika for as much as $1.95 billion), 1047 Video games, Candivore (high ten grossing Match 3 video games globally), GOAT (former founders of Plarium), Elyzio, 44 Pixels and AMP amongst others. The exit numbers have been within the billions of {dollars}.
“From Day One we aimed to be a very founder-centric fund. My belief is that the more support our founders have, the better we are,” mentioned Reisel. “I am very confident in the model we have built and proud to be backing top entrepreneurs globally from, Israel, Middle East, Europe, US, and soon-to-be additional parts of the globe. Our founders are our success,” mentioned Reisel.
Vgames prides itself on being a specialised funding group comprising Mironov; Reisel; David Digmi, COO; and Riki Papa Pnini, IR and advertising lead.
“We are still very consumer focused,” Reisel mentioned. “Content creation, with the majority in game studios. It’s very similar in strategy to fund one and fund two. We’re happy with it so why change?”
All group members have lively roles in investments and portfolio. This intimate, hands-on group permits the fund to shortly execute selections whereas sustaining a trusting investor-entrepreneur relationship. The fund can also be stage agnostic, it invests in very early days of the corporate all the best way to A and development rounds.
Reisel mentioned that cross-platform video games have arrived in a giant means, and it really works properly for video games to launch on a number of platforms, together with PC, console and cell.
Requested about investments in blockchain video games or the metaverse or AI, Reisel mentioned the agency doesn’t consider in these tendencies. He thinks of crypto as a buying and selling place, reasonably than a spot to play video games.
“I think it was too aggressive on how it landed on the market. We’re still going to see these intersections, but I think it’s going to take time. As a fund, we took very, very few positions,” Reisel mentioned. “You won’t see any big crypto names on our list. We’re very disciplined on content creation. I think it’s not technology. It’s more type of content you’re playing. We always want to invest in games that we believe can attract a mass market.”
Reisel mentioned he doesn’t suppose that AI goes to exchange recreation makers anytime quickly. He sees nice worth in informal and mid-core video games, artwork, narrative design and degree design with regards to human capabilities. However he does consider AI will assistance on reducing manufacturing prices.
“Maybe if you need to put 10 trees on a map, you could do them with AI,” he mentioned.
The fund has just lately led an undisclosed $50 million spherical in one in every of its portfolio firms. Among the many assist the fund supplies is nondilutive financing for development firms as an alternative choice to fairness – win win for each founders and traders.
“We invest in teams, content and believe in a data-driven approach,” mentioned Mironov, accomplice and recreation knowledgeable at Vgames, in a press release. “Depending on the stage of the company we analyze the genre, metrics if applicable and growth opportunity, and based on that drive our investment decisions. We are seeking for the strongest teams out there, teams that are not afraid to think big and tackle red ocean opportunities. We often get asked whether we invest in Mobile/PC/Consoles.”
Mironov added, “Our answer has been consistent: We have a content-first approach. So, as long as players enjoy playing, as long as there is a strong business model to back it and as long as there’s great potential, we would love to explore.”
Vgames is intent on protecting the identical funding rhythm and deploying capital shortly to develop its portfolio and assist its present portfolio as properly.
Among the many investments, Reisel is optimistic about 1047 Video games’ and its pending launching in Could of Splitgate 2. Reisel mentioned he sees firms like 1047 Video games benefiting from distant work.
Vgames expects to rent its first investor outdoors of Israel, although the fund has been a worldwide investor with firms throughout Europe, India, Turkey and the Center East.
“We’re here to deploy if we find opportunities we can move on,” Reisel mentioned.
There have been instances when the agency made an funding each month, he mentioned. He mentioned he hopes the scenario in Israel goes to get higher.
“I live in Israel,” he mentioned. “I have to be optimistic.”
And he mentioned he’s optimistic that folks will proceed to play video games.
“The amount of people globally is only growing. Connectivity is growing. I think the fact that games today could run on lower-end devices in tier three countries — it’s very important,” Reisel mentioned. “We focus on that a lot with our portfolio companies,” he mentioned. “Games can be accessible on any device. We’re seeing a lot of innovation in companies, and IP holders are still going to run the show for many years.”
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