Financing game businesses The global video game industry landscape as inflation has pushed has seen massive growth in recent up costs, and a hyper-competitive years, with total revenues exceeding AAA market demanding ever-larger, USD180bn in 2023. During this time, more complex and graphically investment has greatly expanded, intense experiences. Between encompassing both traditional 2018 and 2023, to take one example, and newer sources of financing. the development budgets on Between 2020-2023, it’s estimated Insomniac’s Spider-Man franchise aggregate venture capital and grew from around USD100 million corporate investment into gaming for the first game and around businesses exceeded USD31bn. In the USD156m for the second to around same period, it’s estimated the value USD315m for the third. of M&A activity exceeded USD170bn. As the game financing market has This growth has greatly expanded slowed due to the tougher economic the available sources of game climate, the challenge for founders, finance as the number of investors – studios and investors has grown. both venture capital and corporate Pairing the right development project – has grown significantly. with the right source of financing However, this growth has also is key. There are two main funding come at a time when the cost of models in the industry: publishing game development is growing and equity investment, with a number exponentially. The drivers for this of alternative options also available. are multifaceted but include a challenging macroeconomic 1100