According to a recent report by ggchronicles, the web3 gaming sector has seen a wave of new investments, with five game and infrastructure developers collectively raising over $38 million in the past week. This surge in funding coincides with the Game Developers Conference (GDC), suggesting that industry events continue to play a role in driving investor interest. Despite a broader decline in year-over-year funding, these recent raises highlight continued confidence in blockchain-based gaming, AI-driven development, and alternative monetization strategies. The companies securing funding range from AI-powered game publishers to on-chain MMORPGs and competitive multiplayer experiences, reflecting the evolving landscape of web3 gaming.

Web3 Gaming Startups Secure Over $38 Million This Week

Over $38 Million in Funding

In the past week, five web3 gaming and infrastructure startups have raised over $38 million, coinciding with GDC. Despite a decline in year-over-year funding, investors continue to support innovation in blockchain gaming. Here’s a breakdown of the latest raises:

M10 Secures $3M for Competitive Multiplayer Gaming

M10, a web3 game developer and publisher, has raised $3 million in a seed funding round. The company is currently developing a competitive multiplayer shooter aimed at addressing challenges in the free-to-play gaming model, particularly those related to aggressive monetization strategies. M10’s CEO, Mohamed, has stated that the studio is committed to creating an engaging shooter experience while rethinking traditional free-to-play models. By offering players opportunities to generate value within the game, M10 aims to set a new standard in competitive multiplayer gaming.

M10 Raises $3 Million Led By Sui Foundation

PlaysOut Receives $7M to Expand Mini-Game Platform

PlaysOut, a web3 mini-game and software development kit (SDK) platform, has secured $7 million in a seed funding round. The platform provides infrastructure for publishing, monetizing, and rewarding users through mini-games that operate outside of WeChat. PlaysOut has also formed a partnership with Tencent to bring thousands of WeChat games to Telegram. With this funding, the company plans to develop high-quality mini-games, expand its ecosystem, and secure partnerships with major super apps, positioning itself as a key player in the web3 gaming space.

PlaysOut Raises $7 Million with $70 Million Valuation

Ephyra Secures $10.5M in Series A Funding

Ephyra, previously known as Game Beast, has secured $10.5 million in a Series A funding round. Along with this funding, the company has rebranded and shifted its focus toward developing AI-powered companions within a web3 gaming platform. Initially, Ephyra aimed to build user-generated content tools for Roblox and acquire strategic game and data assets. This recent funding follows an earlier pre-seed round of $3.7 million in September 2024, highlighting continued investor interest in the company’s evolving direction.

Ephyra Secures $10.5M in Series A Funding

Kamigotchi Raises $1.3M for On-Chain MMORPG

Kamigotchi, a fully on-chain idle MMORPG, has raised $1.3 million in seed funding. The game integrates elements of strategy, pet-raising, and player-versus-player mechanics. One of the investors, Apix, has expressed strong support for the project, emphasizing its innovative approach and potential for growth. The game is designed to leverage the flywheel effect by integrating with FOCG, Initia’s rollup network, and a token-based economy, which could help drive engagement and sustainability.

Kamigotchi Raises $1.3M for On-Chain MMORPG

Slingshot DAO Raises $16M Prior to Token Launch

Slingshot DAO has announced a $16 million funding round just one day before its token launch. Although the specific type of funding round has not been disclosed, it is likely a token round. Slingshot DAO functions as a publisher for AI-generated Roblox games and claims to have launched over 1,000 games, generating more than $25 million in revenue and paying out $3.1 million to developers. The platform allows Roblox developers to submit game concepts, which are then voted on by SLING token holders. At the end of each season, the most popular ideas receive funding and support, offering a unique approach to game publishing.

Slingshot DAO Raises $16M Prior to Token Launch

Web3 Gaming Investment Landscape

According to other sources, investments in crypto games, protocols, and infrastructure projects have exceeded $100 million this year. However, the sector has seen a sharp decline in funding year-over-year since its peak in 2021. Despite this downturn, the recent funding announcements indicate that investors remain interested in web3 gaming, particularly in AI-driven game development, blockchain-based ownership models, and alternative monetization strategies. This continued investment suggests that while the broader funding environment may be contracting, there are still opportunities for innovation and growth in the web3 gaming sector.

Source: ggchronicles