Bitkraft Ventures, a games-focused investor headquartered in Denver, Colorado, and founded by European gaming industry veteran Jens Hilgers, has closed its third fund at $275 million. The fund will primarily target seed and Series A investments in gaming studios and platforms supporting game production.
This move comes at a time when investments in the gaming sector have declined by 72% year-on-year, as reported by Pitchbook.
Overview:
- Bitkraft Ventures, led by Jens Hilgers, has built a portfolio of over 130 companies with assets under management exceeding $1 billion.
- The VC firm is known for its investments in a diverse range of gaming-related companies, including Frost Giant, Anzu, Carry1st, InWorld, Karate Combat, and Immutable.
Notable Investments:
- Frost Giant, a studio focusing on real-time strategy games, has garnered attention for its upcoming title, Stormgate, developed by a team previously involved in building StarCraft.
- Other investments include Anzu, an in-game advertising platform; Carry1st, a mobile gaming platform targeting Africa; InWorld, a social platform; Karate Combat, a martial arts league; and Immutable, the creator of the Gods Unchained crypto-based game.
Investment Strategy and Performance:
- Bitkraft’s investment strategy involves backing 30 to 35 companies per fund, with an average ticket size of about $4 million, allocating 50% of capital for initial investments and 50% for follow-on rounds.
- The firm has achieved success with this strategy, ranking in the top decile in the latest Cambridge Associates ranking and demonstrating strong performance.
Investor Base and Partnerships:
- Bitkraft’s investor base comprises a mix of family offices and institutional funds, including a major global sportswear player, although the specific name was not disclosed.
- The firm’s strategy and approach draw comparisons to Play Ventures in Singapore, which has raised $222.9 million across four funds and invests across various types of gaming platforms.
Bitkraft Ventures’ latest fundraise reflects its continued commitment to supporting innovation and growth within the gaming industry, despite broader challenges facing the sector.
