Global gaming VC deals sees rebound in Q1 2025, despite yearly dip in deal value

The gaming industry saw a notable upswing in venture capital interest in the first quarter of 2025, with total VC investments climbing to $373 million across 77 deals. This represents a 35% jump from Q4 2024, according to a new report by Konvoy. However, the momentum isn’t without caveats—deal value still trails 41% behind the same quarter last year, indicating that while activity is heating up, investment volumes remain more conservative.

Konvoy’s report points to a broader $700 million infusion into the private gaming market during Q1, a 23% boost over the previous quarter. Much of this growth stems from a surge in growth-stage funding, which rose by an impressive 125%, signaling increased investor confidence in scaling gaming ventures.

Despite the overall uptick, venture activity in key regions remains stagnant. Africa, Australia, and South America all recorded zero gaming VC deals in Q1 2025. For Africa, this marks the third consecutive quarter without investment—a stark contrast to its $46 million peak in early 2022. South America mirrors this downward trend, with no deals in Q1 following a high of $34 million in the same period three years ago. Australia, which once led the region with a $219 million haul in Q1 2022, also saw no activity this quarter, despite modest engagement last year.

Beyond venture capital, public market gaming investments are showing resilience. Gaming-themed ETFs such as ESPO and HERO outperformed broader market indices in early 2025, posting gains of 4.8% and 6.2% respectively, while the S&P 500 declined by 5.4% year-to-date.

The United States continues to dominate global gaming economics, accounting for 26% of industry revenue. American gamers spend more than triple their Chinese counterparts, and U.S.-based gaming startups secured 7.6 times more VC funding than those in China during Q1.

On the user front, the Asia-Pacific region maintains its lead with 3.4 billion gamers, making up 53% of the global gaming population. The Middle East and Africa follow with 16%, trailed by Europe (13%), Latin America (10%), and North America (7%).