Video game VC funding hits three-year low

Video game VC funding hits three-year low

The amount of money being invested in the video games industry by venture capital funds hit a three-year low in the three months ending September.

That's according to data from Pitchbook – reported by Bloomberg – which shows that only $700.3 million was invested into the games market during the last quarter.

That's the lowest amount since the second quarter of 2020. Perhaps unsurprisingly, due to the COVID-19 pandemic and ensuing lockdowns, the video game market boomed as people needed something to do. This attracted a large amount of investment, which continued and hit a peak in the second quarter of 2022.

Private equity groups are also not putting money into video games; these outfits pumped $20 million into the market in the third quarter of 2023, well below the average of $852 million.

“Game development is risky,” said PitchBook analyst Eric Bellomo.

“Outsize returns come from a small collection of games, but it is very hard to pick those games at an early stage.”

PCGamesInsider Contributing Editor

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he joined Steel Media as the editor for new site In October 2019 he left this full-time position at the company but still contributes to the site on a daily basis. He has also written for, VGC, Games London, The Observer/Guardian and Esquire UK.