VC Investments in Web3 Gaming and Entertainment 2023
Bazooka Tango, a gaming studio founded by former Rockstar and Riot developers, secured USD 5 million from BITKRAFT Ventures and other participants. This investment will support the development of Shardbound, a tactical collectible card game that combines trading card game elements, tactical maneuvers, and digital collectibles. Shardbound is set on a fantasy island and offers players a mix of strategic gameplay and collectible rewards.
Authentick, a platform offering wallet-free purchases of collectibles, disclosed USD 4 million in seed funding led by Singaporean VC firm Menyala. Authentick aims to revolutionize the purchase of digital collectibles, making them accessible on e-commerce platforms like Alibaba’s Lazada and Shopify.
Intract, a Web3 exploration platform, secured USD 3 million in seed funding from Alpha Wave, BITKRAFT, and others. The startup focuses on community engagement, allowing users to earn tokens and nonfungible tokens (NFTs) by participating in various quests and challenges.
The surge in VC investment in Web3 gaming and entertainment is part of a broader trend in the metaverse gaming market, which is projected to grow significantly. The Metaverse in Gaming Market is expected to reach USD 119.2 billion by 2028, driven by the upsurge in virtual world immersive experiences and the demand for AR and VR devices. However, the market faces challenges regulating metaverse gaming, particularly cybersecurity and privacy.
This influx of capital into Web3 gaming and entertainment indicates a strong market belief in the potential of these technologies. As these companies develop and release their products, they contribute to the evolution of the gaming and entertainment landscape, offering innovative and immersive digital experiences. Investments in companies like Animoca Brands, Bazooka Tango, Authentick, and Intract demonstrate the growing interest in the intersection of gaming, technology, and digital identity in the Web3 space.
Market Growth CAGR Insights and Prominent Players
The Metaverse in Gaming Market, valued at USD 22.7 billion in 2023, is expected to grow at a CAGR of 39.3% and reach USD 119.2 billion by 2028. Key drivers include brand promotions using gamification and virtual world simulators. Major challenges include regulating the metaverse in gaming concerning cybersecurity, privacy, and usage standards. Meta, Activision Blizzard, Netease, Electronic Arts, Take-Two, Tencent, Nexon, and Epic Games are key market players.
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