Apr 4, 2025

Web3 Gaming Faces Decline in VC Activity Amid Market Changes

Venture capital spending increased, reaching an estimated $4.5 billion last quarter; however, gaming projects are not benefiting from this trend.

Key points include:

VC interest is shifting towards projects with real-world value.
Deal volume in the gaming sector fell by 9.5%, totaling 649 deals, similar to figures from 2018-2019.
The number of active investors in content development is declining since 2021.
Despite substantial year-over-year deal value increases, inflated figures were driven by large deals like Disney/Epic Games.
Current investment climate viewed as a new steady state rather than a resurgence.
Many well-funded gaming startups have yet to deliver significant successes.
Players prioritize game enjoyment over underlying technology.

Experts do not anticipate a resurgence in VC activity for the gaming sector in the near future. While gambling-related games are gaining some traction, they are not the focus of major VC investments at this time.