Bitkraft Ventures Raises $275 Million for Third Fund to Support Gaming Studios and Platforms

Key Takeaways

• Bitkraft Ventures, a games investor, has raised its third fund of $275 million to make seed and Series A investments in gaming studios and platforms.
• The fund aims to support game production amidst a 72% decline in games investments year on year.
• Founded by games industry veteran Jens Hilgers, Bitkraft has over 130 companies in its portfolio and more than $1 billion in assets under management.
• Bitkraft's successful strategy includes investing in companies like Frost Giant, Anzu, Carry1st, InWorld, Karate Combat, and Immutable.
• The firm’s LP base includes family offices, institutional funds, and a major global sportswear player, reinforcing its successful investment strategy.

News Content

Bitkraft Ventures, a gaming investor based in Denver but with European founders, has raised $275 million for its third fund. The fund will focus on seed and Series A investments in gaming studios and platforms supporting game production. Bitkraft, founded by industry veteran Jens Hilgers, already has over 130 companies in its portfolio and more than $1 billion in assets under management. The firm's LP base is a mix of family offices and institutional funds, including a major global sportswear player.

Bitkraft's investments include Frost Giant studio, which is set to launch a highly anticipated real-time strategy game called "Stormgate." Other investments range from in-game ad platforms to mobile gaming and social platforms. The firm's strategy of investing in around 30 to 35 companies with an average ticket size of about $4 million has been successful, earning it a top decile ranking in the latest Cambridge Associates ranking. This makes Bitkraft comparable to Play Ventures in Singapore, which has raised $222.9 million across 4 funds and also invests across various types of gaming platforms.

Analysis

Bitkraft Ventures' successful $275 million fundraise reflects the flourishing gaming market and the growing demand for gaming content. The rise of gaming as a leading form of entertainment has driven an increased interest and investment in gaming studios and platforms. Bitkraft's strategic investment in a diverse range of gaming companies positions it for long-term success in a rapidly evolving industry. The fund's focus on seed and Series A investments indicates a deep commitment to nurturing and supporting emerging talent. This surge in funds will likely result in the creation of innovative games and technological advancements, continuing to reshape the gaming landscape and its economic impact.

Do You Know?

• Third Fund of Bitkraft Ventures: Bitkraft Ventures, a gaming investor based in Denver with European founders, raised $275 million for its third fund. The fund will focus on seed and Series A investments in gaming studios and platforms supporting game production.

• Frost Giant Studio and "Stormgate" Game: Bitkraft's investments include Frost Giant studio, which is set to launch a highly anticipated real-time strategy game called "Stormgate."

• Investment Strategy and Ranking: Bitkraft's strategy of investing in around 30 to 35 companies with an average ticket size of about $4 million has been successful, earning it a top decile ranking in the latest Cambridge Associates ranking.