It’s still a good time for investments in games
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David Higley, Shan Shan, Lia Zhang and Frankie Zhu joined the GamesBeat Summit to talk about investments, mergers and acquisitions in the games industry.
Financial and economic analysts are predicting an economic downturn in the second half of 2023. That’s never fun. The kind of belt-tightening that can be expected hits across all industries pretty evenly. Despite the looming situation, there’s still plenty of mergers and acquisitions going on. There’s still a wealth of venture capital to be had.
It’s just a little more focused, now.
“Gaming has been one of the more resilient industries or sectors, compared to the broader landscape,” said Lightspeed Venture Partners’ Shan. “We’re still seeing a lot of active behaviors in the early seed stage side, as well as seeing activity in M&A on the growth side.”
M&A, for those curious, stands for mergers and acquisitions. It’s a good sign that there’s still moves being made. It suggests that the gaming industry is strong enough to survive the economy taking a big dip.
“What we’ve seen is definitely a lag and a slow down overall in terms of volume and deal flow,” said Makers Fund’s Lia Zhang. “However, it’s quite relative. If you look at what it was five or six years ago, we’re still significantly higher.”
Half a decade ago there was a lot of money moving around. Lots of companies and projects were seeking investments or being sold to investors. The people behind those projects are back, with new projects, companies and ideas. It makes for a rich list of potentially safe bets.
“A lot of these founders have actually come out in the last year or two from those M&A
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