DDM Games Investment Review – May 30, 2023

Q1’s $1.2B Combined Investments/M&As Reflect Cautious Sentiment

Video Game Investments Totaled $755.2M, the Lowest Quarter in Four+ Years

Enhanced Q1 2023 Games Investment Review Report Available!
By the DDM Data & Research Team

 

With reduced values across investments, M&As and IPOs, 2023 is off to a low start. The first quarter reflected the economic anxiety and cautious outlook that we noted previously.

For Q1 2023:

  • Investments totaled $755.2M across 144 transactions, which is the lowest quarter value since Q3 2018’s $635.8M and a marked decrease of 41% in value and 16% in volume compared to Q4 2022’s $1.3B and 171 investments
  • M&As totaled $415.0M across 40 transactions, a decrease of 92% in value and 34% in volume compared to Q4’s $5.1B across 61 transactions
  • Both investments and M&As recorded the highest percentages of transactions with undisclosed values, 35% and 93% of investments and M&A volume, respectively, suggesting valuations have cooled, potential down rounds, and competition tightening
  • Four companies held IPOs in Q1 with a total market capitalization of $453.5M and compared to Q4 where exits achieved over $5.4B across 65 transactions, Q1 saw an 84% decrease in value and 32% in volume at $868.5M across 44 transactions
  • DDM tracked over $9.6B in new capital raised across 19 new funds, an 18% decrease in value and 32% in volume compared to Q4 $11.3B across 28 new funds

 

DDM Games Investment Review Update
Digital Development Management is proud to reveal we have greatly expanded our report on video game investments and M&As after conducting a customer survey. DDM is very appreciative of all the overwhelmingly positive feedback, as we took your recommendations to focus and expand our dataset with new analyses, insights, and charts addressing quarterly comparisons, funding stages, regions, developer investments and more!

We’re excited coverage continues from Forbes and GamesIndustry.biz.

Read more in our Q1 2023 Games Investment Review Free Summary or purchase the standalone single report for $399. We hope you enjoy our enhanced free and paid reports and we welcome your feedback at data@ddmagents.com.