Global game investment increased by 38 % to $ 4.3 billion in 2024 | Hiro Capital

The global games investment increased by 38 % from $ 3.1 billion to $ 4.3 billion in 2024, according to a report issued by Game Venture Capital Hiro Capital.

If you look at games, mixed reality and sports technology, the numbers showed more than $ 10 billion invested in those categories in 2024, based on data from the Deal room analyzed by Hiro Capital.

Luke Alvarez, the founding partner of Hiro Capital, said in an interview with Gamesbeat, although the general financing in the world has shrunk, sponsored Global Games Investment.

“We are very optimistic,” Alvarez said. “We continue to make games in a huge and exciting sector, and its slowdown, but it recovers from that and quality players will continue to earn great games and earn money for their investors. You eat world games by expanding sport and all other areas such as deep technology, and we are excited about that.”

He pointed out that the United Kingdom industry and European games are worth about 200 billion dollars. In the UK, the investment in spatial computing increased by 141 % in 2024, where the AR, VR and 3D technologies are widely adopted in industries that exceed games, such as health care. The report is fond of that investment in sports technology was $ 1.8 billion, decreased from $ 2.5 billion in 2023.

Since overwhelming technologies such as spatial computing and AI go beyond entertainment, they reshape industries such as health care, cars and skills training. The report said that this paves the exciting stage for the year 2025, as the benefits of these new technologies begin to achieve them.

During the year 2024, spatial computing companies raised $ 4.5 billion, with significant growth in AR and VR applications outside the games.

“We are on the threshold of a new computing model,” Alvarez said. “The fifth era of computing will mainly change how we interact, create and experiment with reality. Our role is to support the pioneers of building this future, but the real opportunity lies in the common capabilities of all these sub -sectors, where we find new ways to integrate technology in our lives.”

Continuing attention to gaming technology

According to Dealroom data, games financing throughout the United States and Europe amounted to $ 3.5 billion, as nearly $ 1.8 billion in 2023 doubled, and game financing increased from $ 3.1 billion to $ 4.3 billion. This is permanently popular for the well -known triple service games with entertainment and the launch of new independent launches in 2024 such as Palworld, HELLDIVERS II and Hiro Games’ Enshrouded.

The United States continued to control the investment in the games, as it contributed $ 2.9 billion in total-an altitude of one billion dollars in 2023. late stage deals such as EPIC raised 1.5 billion dollars more than the total financing of games that were collected in the United States in 2023 ($ 1.1 billion).

“We are looking into data from Dealroom. From Hiro perspective, we also look at many investment banks that cover the space. Everyone has a slightly different pieces of these numbers, but the arrangement of the size is the same.”

He added: “In 2022, we were north of $ 10 billion and in 2023 we were low to $ 3.1 billion. Alvarez said:“ This year, we will return greatly from 2023, but we are still less than half -peak in 2022. It has risen. Greatly in the past year, we say that there is a better quality to invest in better quality companies. “” There are some very large private market transactions such as building missiles, endless reality, etc. “.

In the United Kingdom, investment in 2024 decreased by 15 % year on an annual basis to $ 313 million, but important deals, such as building a 110 million dollar missile missile missile series, showed continuous activity in this sector.

Europe has fewer games (31) games from the United States (34) over time. However, the fact that this is very close shows the strength of the game industry in Europe as the United States has more than three times the number of rawiyat from Europe. However, Europe is still behind the United States when it comes to the value of institutions: European and UK games sectors are worth $ 197.4 billion and employ 271,000 employees, compared to $ 3.8 trillion for the United States and more than 330,000 employees.

A good wallet

Of course, Alvarez is optimistic about the Game Investment portfolio in Hiro Capital.

“We have some high -quality game and gaming technology in the wallet. Keen Games have achieved well with Trughrouded and we are happy with that.” “Happy Volcano, a Belgian studio we went back a few years ago, was a really good follow -up deal. Soccererse, which we invested in 2023, was launched.”

He said that the year 2024 was difficult for this industry. Alvarez said that the great talented people in the industry were enlisted strongly in the post -guardian era and “crossed their crawles.” “Not all of the capital has been allocated well. We all have a thesis that a lot of money is very high may feel the great evaluation from the founder’s point of view, but it is not necessarily well for the studio because you spend a lot while you are exceeding the combustion rate.”

On the other hand, profits were improving for companies such as Epic Games and others that were on the public market (at least until recently with companies like Electronic Arts). Hiro Capital is an investor in electronic sports, and this sector has faced a difficult time, but Team Liquid doubled its revenues and profitable.

“Even in this harsh market, I think 2025 is satisfied,” he said. “The sectors pick up and people grow again. It is likely to be difficult to ever be penetrated as a new studio, but if you are making something great with amazing fun and an innovative gameplay, you can go out. Some of the wonderful launch operations in 2024 are the studios that we have not heard before, such as the Black Legend: Wukong Maker.

He believes that strategic investors will return to the merger and purchase deals market, and that windows open a reserve for public subscriptions. He said that companies that have empty pipelines for the last part of 2025 and 2026 are likely to buy their way to the market.

Youthful

He pointed out that there are companies that belong to the bright points such as the market for young players.

“There are parts of the industry and the specified companies where things are going well. We participated in a seed company with Garina and recovered a wave. Many companies have survived the storm. They are in good condition. I think the epic is in good condition. I think Roblox is in a state It is increasingly good. Other companies, and I will not call it, which has a very difficult 2024 title and has seen the decrease in the performance of the stock.

For buyers, he said: “If you are strategically and want to get a wonderful new game studios or an important new technology, it is now possible that it will be the right time to do so. But I think people want quality. They want games that players love with really good retaining standards. They want Studios make money where they buy technology.

He pointed out that the company has made some investments before closing the year. Some reflect that “the players tend to be at the sharp end of the new computing technology.”

Ascending on virtual reality and overwhelming technology

The demand for overwhelming environments, fed by the AI ​​and AI, as well as devices in the devices, witnessed British spatial computing companies (AR, VR, and 3D Technologies).

This helped to push European investment up to a quarter to 2.7 billion dollars. During the year 2024, these technologies have moved beyond the boundaries of games in auto applications, health care and industrial training, among other sectors, such as VR Medical Training, Oxford Medical Simulation series of $ 12.6 million a.

In general, spatial computing financing decreased by 20 % to 4.5 billion dollars, but the United States has again dominated the deals, raising $ 3.1 billion.

Alvarez is optimistic about virtual reality, as VR appeals to Gen Z and Gen Alpha Young. He pointed out that AJ Shewki, Dr. Doom, launched a partnership with Meta where his LIV can put cameras inside Horizon VR to capture broadcasting, as well as inside the famous Gorilla Game brand, so that people can share their achievements in VR.

He said: “It is a three -dimensional social network that wears Gorilla’s clothes for children in this era.” “The number of hard and growing monthly monthly signs. Perhaps those who are slightly grow up are aware of the extent of a transformation in generations, such as Roblox and Fortnite and this generation. There is a three -dimensional social world with a real social computing that is beginning to appear to children who come. So I think we are optimistic about that. “

It is also enthusiastic about VR studios like Polyarc, which makes Moss. He believes that Google and Samsung will release something good with Android XR before the end of the year, and Meta will return with new devices as well. He said Apple may also try again.

“I think this place, this space is coming,” said.

Sports, technology and games

Alvarez said it was great at the intersection of games, technology and sports. I love Alvarez Carvski, an Amnesty International game that was built for skiers connected to a clip that can be worn on your ski shoes. He said this tracks a like 120 variables about your skiing technology 100 times in real and actual time.

“While skating on the mountain, it gives you comments on how to improve your skiing technique, and everything is photographed, so you are constantly hearing happy noise every time you play its role correctly, as you do,” he said. ” Candy Crush, but it tracks what your body does with unusual details in the actual time as it responds to you while moving to the bottom of the mountain. “

He added: “We think this is really interesting. Is it a game? Is it the human company? .