Play Ventures, a global venture capital firm based in Singapore, has successfully raised $140 million for its third gaming fund. This new fund marks the firm’s largest to date, bringing its total assets under management to $450 million. With the gaming industry facing challenges, including 33,000 layoffs over the past 2.5 years, the timing of this fundraising is seen as pivotal for the sector’s future.

The third fund, known as Fund III, has gained significant backing from a range of returning investors, including university endowments, strategic partners from the gaming sector, and prominent global family offices. It also attracted new investors who support Play Ventures’ investment thesis, signaling confidence in the firm’s vision for the gaming ecosystem.

The Play Ventures Team

$140 Million Fund III

Fund III continues Play Ventures’ established strategy of investing in early-stage companies within the gaming industry. The fund will focus on key areas such as mobile free-to-play games, gaming infrastructure, AI-enhanced gaming tools, mobile consumer applications, and new distribution channels for games. In an interview with GamesBeat Henric Suuronen, founding partner at Play Ventures, emphasized the growing influence of mobile gaming, stating:

“Mobile has swallowed our time whole. People now live on their phones—spending hours a day engaging with social media, apps, and games.” According to Suuronen, mobile gaming presents significant untapped potential, and Fund III aims to invest in the next wave of billion-dollar games and interactive experiences powered by artificial intelligence.

The fund will also broaden its scope to include “playable apps”—consumer applications that integrate the principles of free-to-play gaming to create interactive user experiences. Phylicia Koh, partner at Play Ventures, highlighted the potential of gaming mechanics in everyday apps, noting that this approach has already shown promise in companies like Arya, Ahead, Benjamin, and Bible Chat.

The Leading Early Stage Gaming VC

Investing in AI and the Future of Gaming

A recent investment by Fund III includes AI startup Beyond, founded by Anton Gauffin, the founder of Huuuge Games. Beyond is working on its first consumer product, Decor Society, showcasing the potential of AI-powered tools in the gaming and consumer sectors.

Harri Manninen, cofounder of Play Ventures, acknowledged the recent struggles within the gaming industry, but pointed out that periods of economic downturn often lead to new opportunities. “The gaming industry continues to evolve, and there are emerging opportunities in areas like AI-powered tools, user-generated content platforms, and global markets,” Manninen said. He believes the best founders will seize these challenges to build the next generation of successful gaming companies.

Fund One Performance

The Road Ahead for Play Ventures

With Fund III, Play Ventures plans to invest in 20 to 25 early-stage companies worldwide, focusing on pre-seed to Series A investments. The firm will also reserve capital for the highest-performing companies in its portfolio to help them scale.

Play Ventures’ track record is notable for its continued success in identifying promising startups. The firm raised its first fund of $30 million in 2018 and followed up with a $135 million second fund in 2021. The team behind the venture capital firm includes Suuronen, Manninen, general partners Kenrick Drijkoningen, Phylicia Koh, and Anton Backman.

The Play Principles

Looking forward, Play Ventures remains optimistic about the future of the gaming industry and its role in shaping its next chapter. Manninen expressed hope that the new gaming companies funded by Play Ventures would not only create innovative experiences but also provide opportunities for the talented professionals who have recently faced job losses in the gaming industry.

As Play Ventures deploys its third fund, the firm continues its commitment to supporting early-stage founders who are redefining the gaming landscape and building the next generation of interactive experiences.

Source: GamesBeat