Games VC funding reaches new plateau after 72% YoY decline | PitchBook

Venture capital funding in games leveled out and established a new baseline according to PitchBook’s Q4 2023 Gaming Report. Over the last five quarters, gaming startups have raised between $900 million and $1.3 billion. Similarly, the number of deals closed has generally trended downwards. Fewer than 200 deals closed in each of the last five quarters.

“This level of activity likely represents a more realistic level of investment than the peak years of 2020 to 2022, which attracted nonendemic and ‘tourist’ investors during Web3 and metaverse hype-cycles,” said PitchBook’s report.