Makers Fund closes third fund at $500M to back interactive entertainment companies

techcrunch.com:

Makers Fund has raised its third fund of $500 million to invest in interactive entertainment startups. Founding partner Jayson Chi told TechCrunch that it now has over $1 billion in assets under management (AUM). The third fund is Maker’s largest fund after its $200 million fund raised in 2018 and a $260 million Fund II in 2020.

Makers Fund’s third fund will focus on early-stage investment, writing checks from $500K to $40 million, Chi said, adding that the median check will be between $5 million and $10 million. The VC firm is committed to supporting founders for the long run and therefore reserves a large share of its fund for follow on investments, Chi noted. 

Makers Fund launched its new vehicle last summer and completed the fundraise in two months, Chi said in an interview. It has made more than ten investments out of the third fund, including Alta and AudioMob. The firm is actively looking for investment opportunities globally across content, including VR, AR games, and technology that supports developers and publishers in interactive media. In addition, it is interested in investing in social networks, platforms and tools for gamers and creators, he noted. 

Chi told TechCrunch that two co-founders of Makers Fund, Michael Cheung and Chi, observed that a large share of innovation and valuation in interactive media comes from startups. Still, talented creators in gaming do not have the same funding or support as their counterparts like traditional technology companies in the industry, Chi said. Makers wanted to fill the gap and support those startups. 

Its limited partners include the US-based endowments, foundations and institutions, according to Chi, who did not provide the names of LPs. 

“We founded Makers with the