PitchBook drops first gaming investment report covering Q4 2022
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Investment data and research firm PitchBook has released its first market report on the gaming industry. The report focuses on Q4 2022 and provides an overview of the games market, venture capital activity and growth opportunities.
Like many peers, PitchBook’s data shows that 2022 was a corrective year for the games market. Deal activity and exits trended down from 2021’s highs, they but have still grown from pre-COVID levels. 2022’s total deal value is nearly quadruple that of 2019 and 1.5x its total deal volume.
However, most of this activity occurred in the first half of 2022. “Q1 and Q2 accounted for $9.6 billion in deal value and 855 deals, compared with $3.7 billion in deal value and 451 deals in the third and fourth quarters,” PitchBook reported. This means that 72% of deal value and 65% of deals occurred in H1 of 2022. This could signal that the downturn in activity will continue into 2023.
PitchBook reports that broader macroeconomic trends and regulatory scrutiny have weighed heavily on both deal and exit activity. IPOs have struggled in recent months so most exit activity is a result of M&A.
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While North America continues to be the largest source of capital for gaming, Europe, Asia and the Middle East are becoming more active in recent years. Europe’s funding has fluctuated since 2018 but has generally grown. Asian deal value has grown more consistently. While the Middle East and Africa are not the largest source of
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