A Game-Changing Investment Firm
Bitkraft Ventures, a renowned games investor based out of Denver, Colorado, with European founders, is embarking on its third fund-raising endeavor. The new fund has secured a substantial $275 million, marking a significant milestone in the gaming investment landscape.
Gaming Industry on the Rise
Despite a recent decline in games investments, which have seen a 72% year-on-year drop according to a PitchBook report, Bitkraft’s third fund is poised to make a lasting impact. The firm’s commitment to supporting game production through seed and Series A investments in gaming studios and platforms demonstrates its confidence in the industry’s potential for growth.
Founding Story
Bitkraft was founded by games industry veteran Jens Hilgers, who has over two decades of experience in the field. With a portfolio boasting over 130 companies and more than $1 billion in assets under management, Bitkraft has solidified its position as a leading investor in the gaming space.
Notable Investments
One of the notable investments made by Bitkraft is its stake in Frost Giant studio, which has been making waves with its highly anticipated game Stormgate. The team behind Frost Giant had previously worked on the critically acclaimed StarCraft, and Hilgers expressed his enthusiasm for their innovative approach to real-time strategy games.
Bitkraft’s portfolio also includes:
- Anzu, an in-game ad platform that offers a unique solution for game developers
- Carry1st, a mobile gaming platform focused on the African market, providing a gateway to a vast and growing audience
- InWorld, a social platform designed to facilitate community building within games
- Karate Combat, a martial arts league that combines virtual reality with live-action combat
- Immutable, the creator of the popular crypto-based game Gods Unchained
LP Base and Performance
The firm’s LP (Limited Partner) base is comprised of family offices and institutional funds, with a major global sportswear player confirmed as an LP. When asked about their performance, Hilgers noted that the strategy pursued with the second fund has yielded impressive results, boasting an average ticket size of $4 million and 50% follow-on investments.
Comparison to Play Ventures
Bitkraft’s investment approach can be likened to that of Play Ventures in Singapore, which has raised $222.9 million across four funds. Both firms invest in various types of games platforms, but Bitkraft’s focus on seed and Series A investments sets it apart from its competitors.
Conclusion
As the gaming industry continues to evolve, Bitkraft Ventures remains at the forefront, committed to supporting innovative game development through strategic investments. With a proven track record of success and an impressive portfolio of companies, the firm is poised to make a lasting impact in the years to come.
About the Author
Mike Butcher is Editor-at-large of TechCrunch, with over two decades of experience in journalism. He has written for UK national newspapers and magazines, been named one of the most influential people in European technology by Wired UK, and spoken at various conferences worldwide.
