Fewer venture capitalists are betting on game companies

The game-making business is risky, and that’s led to less capital available for startups in recent years.

Investment in gaming has dropped 7 percent in the first quarter of the year, according to advisory firm Digi-Capital. That’s on top of a capital market that has already declined 25 percent from 2011 to 2014. Total investment in games from venture capitalists was $1.4 billion over the 12 months leading up to the end of March. The problem is that the partners at most firms are risk-adverse, and it’s difficult trying to predict where to put money in a hit-based industry.