General Data
- The most money in Q2 2023 was invested in technology gaming companies (24%); eSports (19%); mobile (19%).
- The largest private investment deals in Q2 2023 were Everdome ($50M – blockchain game and metaverse development); Anzu ($48M – in-game native advertising); Mythical Games ($37M – blockchain-powered MMO development).
❗️However, there’s a nuance – Everdome raised funds through token sales for $50M. This isn’t a traditional fundraise in exchange for company equity.
- By the number of transactions in Q2 2023, mobile games lead (30 transactions); technology companies (22 transactions); and PC/console games (11 transactions).
- Polygon (6 investments); BITKRAFT Ventures (5 investments); Animoca Brands (4 investments) are the most active in Q2 2023.
- VRFabric had the only IPO of the quarter. It was listed on the Polish NewConnect exchange with a market capitalization of $11.4 million.
Comparison with Q1 2023
- In the second quarter of 2023, there were 127 deals totaling $676 million. This is 33.7% less in volume compared to the first quarter (147 deals totaling $1 billion).
- The number of M&A deals in the second quarter decreased from 41 (Q1 2023) to 31. The volume dropped from $565 million (Q1 2023) to $108.4 million.
- Only one gaming IPO of $10 million happened in the second quarter of 2023. In the first quarter, there were 4, totaling $450 million.
Comparison with H1 2022
- In the first half of 2023, there were 274 investment deals totaling $1.7 billion. This is 83% less in volume ($9.8 billion) and 53% less in number (583 deals) compared to the first half of 2022.
- In H1 2023, the total volume of M&A deals was $673.4M with 72 transactions. This is 98% less in volume ($29 billion) and 55% less in number (160 transactions) compared to H1 2022.
❗️Deals involving SEGA and Rovio; Scopely and Savvy Games Group (Steer Studios); Microsoft and Activision Blizzard are expected in the second half of 2023, barring unforeseen events.
Mergers and Acquisitions (M&A)
- The second quarter of 2023 ranks third from the bottom in terms of volume. Only the second quarters of 2010 and 2013 were weaker.
- DDM notes that companies tend to “hold back” money.
- The largest disclosed deals of the quarter were the acquisition of Wargraphs ($53.6 million – analytical service); Night Dive Studios ($19.5 million – developer); Hardsuit Labs (developer and service provider).
Blockchain and Web3
- Investments in crypto projects continue to decline. In Q2 2023, they decreased by 38% in volume (from $390.7 million to $243 million) and 34% in number (from 68 transactions to 45).
- 46% of transactions by volume were from the USA; 25% from the Middle East; 19% from Europe.
