Gaming VC activity settles into a new normal in Q1 | Pitchbook

In the first quarter, gaming VC activity may have finally settled into a new normal — though it’s a leaner, more selective market, according to an analysis by PitchBook.

Q1 funding dipped 3% QoQ to $1.2 billion across 134 deals, the lowest deal count since mid-2019. As early-stage investments continue to shrink, investors grow increasingly discerning, and the M&A and exit environment remain muted, there are still bright spots: investment surged into back-end gaming infrastructure and AI-powered platforms, with standout deals like Bria’s and Beamable’s Series As.

Meanwhile, leading platforms like Roblox and Discord doubled down on in-game advertising strategies, signaling a potential adtech renaissance. This report dives into the investment trends, macroeconomic headwinds, and key deals and players shaping the gaming sector. Overall, it was a mixed quarter.

Q1 deal activity extends the current equilibrium

Gaming VC investment decreased slightly in ...