US-based Bitkraft Ventures, a VC firm specialising in gaming and interactive media investments, has closed its third fund at $275 million. With this fund, the total assets under management of this VC firm exceed $1 billion.
The Bitkraft Venture Fund 3 will focus on early-stage investments in gaming studios, technology, and platforms at the seed and Series A stages. It follows the introduction of another game VC fund, Laton Ventures, which raised $35 million, the Tech4Good £50 million pre-seed fund closed by Ascension VC and the $200 million B2B fund closed by Irish VC Frontline Ventures.
Challenges faced by gaming industry
The gaming industry is growing despite difficulties. Countries like Brazil, India, Southeast Asia, Africa, and the Middle East are helping it expand. Mobile games are becoming popular again, especially as people care more about privacy. Handheld devices like the Nintendo Switch and Steam Deck let people play games anywhere. New technologies like augmented reality, virtual reality, and game subscriptions are also making the industry grow.
AI is also making a big impact on gaming. It helps make games better and safer, and it can improve how players interact with games. Companies like InWorld AI are using AI to create more exciting game experiences.
Even though the gaming industry faces challenges, Bitkraft Ventures believes in its future. They’re investing in new gaming and interactive media companies to support innovation and the future of entertainment.
Focus on gaming industry
BITKRAFT Ventures was founded in 2015 by serial entrepreneur Jens Hilgers. The company recognises game companies as pivotal players in driving the evolution of digital entertainment. It believes in the transformative power of digital experiences in shaping the future of entertainment.
The gaming industry has witnessed massive growth in recent years, with increasing user engagement, activity levels, and monetisation across major game platforms. The founding partner points out at the success of newly formed game studios and the emergence of AI in game production as factors contributing to this growth.
Additionally, Bitkraft Ventures has observed a rise in interest from media and tech giants and private equity firms, entering the gaming market as potential buyers.
Notable investments
Bitkraft Ventures has a strong track record of investing in popular companies worldwide. Some notable investments include Frost Giant, Anzu, Carry1st, InWorld, Voicemod, Immutable, and Karate Combat.
The company’s previous funds have exhibited noteworthy performance, ranking in the top 5% and 8% based on Internal Rate of Return (IRR). Currently, Bitkraft Ventures operates six venture funds with 130 portfolio companies.
