Q1 data reveals a drastic 57 decline in VC investments for blockchain games
The blockchain gaming sector encountered a challenging start to the year, with venture capital deals plummeting by nearly 60% to a total of $288 million, indicating a cautious stance among investors.
Developers within the blockchain gaming industry are navigating a blend of caution and optimism, reflected in a decline in venture capital activity compared to previous quarters. According to data compiled by DappRadar, the sector secured $288 million in funding in Q1, marking a 57% decrease from Q4 2023.
Analysts highlighted that the investment landscape during this period was shaped significantly by only two standout deals: Parallel Studios and Gunzilla Games.
In March, Parallel Studios secured $35 million in funding, backed by Distributed Global, The Operating Group, VanEck, Solana Ventures, Base Ecosystem Fund, and Amber, among others. While specifics on the fund’s allocation were not disclosed, indications suggest the studio aims to expand its footprint across various platforms, with the Epic Games Store gaming marketplace being a pivotal expansion milestone.
Gunzilla Games also raised $30 million for its upcoming project, Off the Grid, a free-to-play battle royale game. The investment, co-led by CoinFund and Avalanche’s Blizzard Fund, aims to extend the game’s reach across multiple gaming platforms, including Sony PlayStation, Microsoft’s Xbox, and PC.
Despite investor caution, the surge in investments towards new game development and technological advancements “demonstrates optimism for future prospects,” according to Gherhelas.
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Gunzilla Games, Satellite.im, Jito Lab close successful funding rounds
