Top Gaming Raises - Triumps, Vanishing Acts, Opportunities! 👀

Table Of Contents

^{*Disclaimer: The funding quantities may differ marginally based on the source}

Introduction

Exploring the Top Gaming Funds: 2021 Overview

1. Sorare ($730 Million)

2. Mythical Games (~$225 Million)

3. Limit Break ($200 Million)

4. Sky Mavis ($152 million)

Exploring the Top Gaming Funds: 2022 Overview

1. Gunzilla Games ($46 Million)

2. Xterio ($40 Million)

3. XPLA Games- Formerly C2X ($25 Million)

4. Community Gaming ($16 Million)

5.  Immortal Game ($15.5 million)

Exploring the Top Gaming Funds: 2023 Overview

1. Believer ($55 Million)

2. Intella X ($12 Million)

3. Illuvium ($10 Million)

4. Azra Games ($10 Million)

5. Argus ($10 Million)

Introduction

In 2022, the gaming industry witnessed significant milestones marked by major acquisitions and blockbuster game releases. High-profile transactions included Microsoft's acquisition of Activision, Sony's acquisition of Bungie, and T2's acquisition of Zynga. Noteworthy game titles such as Elden Ring, God of War: Ragnarok, and Call of Duty: Modern Warfare 2 achieved unprecedented sales, with the latter generating a billion dollars in revenue within a remarkable ten days post-launch.

Blockchain has emerged as a pivotal factor in investment decisions within the gaming landscape. According to Drake Star Global Gaming Report Q2-2023, blockchain deals constitute a substantial share of private placement deals, surpassing other sub-sectors. The year 2023 witnessed blockbuster deals, including Savvy Games Group's acquisition of Scopely for $4.9 billion, a mobile gaming developer renowned for titles such as The Walking Dead and WWE. The Sega Sammy Company also disclosed its intention to acquire Rovio Entertainment for a substantial $775 million.

Despite significant interest and investment, Web3 gaming remains a relatively smaller sub-sector than the established PC/Console and mobile markets. Venture Capital firms are increasingly entering the Web3 gaming space, primarily focusing on seed or early-stage gaming projects. The promise of a more equitable and player-centric gaming experience drives the industry toward Web3. In early 2023, gamers accounted for nearly half of all blockchain activity, reinforcing the industry's shift towards a decentralized and user-focused gaming ecosystem.

Explosive Growth in Web3 Gaming Investments

The DappRadar x BGA Games Reports reveals a staggering surge in investments within the Web3 gaming sector, reaching an impressive $7.6 billion. It demonstrates a remarkable evolution from the $27.7 million total capital raised in 2019, which subsequently soared to $191 million in 2020. The upward trajectory continued in 2021, with total investments hitting $3.7 billion, underscoring the escalating interest and growing confidence in the blockchain gaming space.

Yoda Labs has thoroughly assessed some of the top funded games between 2021 - 2023, rating them for their engagement, progress, and offering insights into upcoming opportunities.

Lets Go 👇🏼

Exploring the Top Gaming Investments 2021 

1. Sorare ($730 Million Raised)

Yoda’s Conclusion: Still with us💪🏼

Community: 🤩 

Opportunity: Earn up to 10% commissions by promoting Sorare

Playable game? ✅

Sorare has amassed an impressive financial track record, boasting a total raise of approximately $769 million. This Fantasy Sports Game, conceptualized by French developers Nicolas Julia (Co-founder and CEO) and Adrien Montfort in September 2018, has taken the gaming arena by storm. The game's unique proposition lies in allowing managers to curate teams of virtual soccer, basketball, and major league baseball players through digital cards, competing in tournaments for substantial weekly rewards, often reaching thousands of dollars.

Distinguishing itself from competitors, Sorare stands out with enticing prizes, the utilization of original blockchain-based cards, and robust backing from industry giants like Ubisoft and ConSensys. Noteworthy funding milestones include a pre-seed round in May 2019, raising over $500,000 facilitated by Seedcamp, Kima Ventures, and ConsenSys Ventures. Subsequent funding rounds reflect the company's escalating success, with $10 million secured in a seed round led by e.ventures (now Headline) in July 2020 and a substantial $50 million influx through Series A financing in February 2021, spearheaded by Benchmark.

The pinnacle of Sorare's fundraising journey arrived in September 2021 when they secured an impressive $680 million Series B financing led by Softbank.

Initially linked to LOOM, Sorare switched to the Ethereum blockchain in 2019 for a digital commerce system. Partnerships include AC Milan, Roma, Juventus, and West Ham United. The game has attracted sports icons like Serena Williams, Lionel Messi, Zinedine Zidane, Rio Ferdinand, Antoine Griezmann, Gerard Piqué, Blake Griffin, and Rudy Gobert.

Transformational Impact of $680 Million Series B Funding

The $680 million injection transformed Sorare, enabling significant expansions. The company increased its workforce and football club portfolio from 180 to over 300. With the funding, Sorare diversified into other sports, adding all 30 NBA and MLB clubs. They also expanded their coverage to include 55 competitions, solidifying their position as a versatile sports gaming platform.

One of the pivotal outcomes of the fundraising was the acceleration of Sorare's mobile-first experience. The company successfully launched its mobile game on the Apple and Google App Store in 2022.

Moreover, the game itself underwent transformative enhancements, featuring multiple makeovers, updates, and the introduction of new features. Today, Sorare stands tall with an extensive network of over 350 partnerships, a workforce boasting 160-plus dedicated employees, and a staggering total raised capital of $769 million.

Online Presence and Player Rewards System

Despite its Medium page boasting a modest following of 4.6K, Sorare remains committed to keeping its community well-informed with regular updates on the ecosystem, partnerships, and crucial events. In stark contrast, Sorare's Twitter presence is robust, boasting approximately 188.5K followers and maintaining a high level of activity with multiple tweets each day.

Sorare has improved its online presence and gaming experience with enhanced player rewards. The platform has revamped its rewards system, offering enticing prizes like Wallet Rewards, Coins, merchandise, and real-life experiences in competitions and Leaderboard Competitions.

Notably, the real-world experiences, such as 'Fly with AC Milan,' 'Sevilla Derby VIP Experience,' and 'Julio Rodriguez Personalized Video,' add a unique dimension to Sorare's reward system, truly setting it apart as a game-changer in the gaming industry.

Image Rebranding and Implications

Despite boasting an impressive user base of over 3.89 million registered managers, Sorare has identified its association with cryptocurrency as a potential impediment to further growth. Therefore, the platform recently introduced support for traditional currencies such as the U.S. dollar, the euro, and the British pound. This shift aims to stimulate user growth and signals a deliberate effort to mitigate the platform's reliance on cryptocurrency.

Sorare is actively reshaping its image and distancing itself from anything crypto. A notable example is the recent rebranding of non-Common Cards ("Blockchain Cards"), now called "Pro Cards," a move that reflects the platform's commitment to adapting and evolving in response to industry dynamics and user perceptions. 

The implications of this rebranding, whether positive or otherwise, remain to be seen and will unfold with time. Despite these changes, it's essential to note that since Sorare's assets are rooted in blockchain tech, increased platform adoption can only contribute positively to the broader web3 landscape.

2. Mythical Games (~$225 Million Raised)

Yoda’s Conclusion: Still with us and home to the biggest web3 game💪🏼

Community: 🤩 

Opportunity: Possible $MYTH migration from Ethereum to Polkadot

Playable? ✅

Mythical Games is a game technology studio dedicated to forging connections among players, creators, brands, and game developers through tailored experiences and content. The company strategically emphasizes constructing player-owned economies, collaborating with leading game developers and publishers while also nurturing its portfolio of games. 

Guided by seasoned professionals in the gaming industry who have played instrumental roles in developing major franchises, including but not limited to Call of Duty, World of Warcraft, Guitar Hero, DJ Hero, Marvel Strike Force, and Skylanders, Mythical Games is headquartered in Los Angeles, California. 

Recognized as one of Forbes' Disruptive Technology Companies to Watch in 2019 and honored with Fast Company's World-Changing Ideas in 2021, Mythical Games garnered considerable attention. Amid the web3 gaming fervor of 2021-22, the company secured over $300 million in funding across eight funding rounds, per Crunchbase data. 

• Jun 4, 2018 - Seed Round:$1M with Struck Crypto

• Nov 15, 2018 - Series A: $15 million in an undisclosed funding round. 

• Mar 1, 2019 - Series A: Undisclosed amount in funding 

• Nov 4, 2019 - Series A: $19 million led by Javelin Venture Partners

• May 27, 2021 - Series A: Undisclosed amount in funding 

• Jun 9, 2021 - Series B: $75 million led by WestCap

• Nov 4, 2021 - Series C: $150 million led by Andreessen Horowitz

• Jun 27, 2023 - Series C: $37 million led by Scytale Digital

Strategic Acquisitions and Portfolio Expansion

The company's strategic growth extends beyond financial backing, with notable acquisitions enhancing its capabilities and reach. Mythical Games has successfully acquired Arcuity (a former provider of CV/ML engines for the residential industry), Polystream (an interactive 3D content streaming platform), ShortRound Games (a UK-based Video Game Developer Studio), and DMarket (an NFT marketplace), into its expanding portfolio.

The rationale behind Mythical Games' acquisition of Arcuity, which is now defunct, remains undisclosed. However, the company's strategic moves are evident in the release of its digital game asset marketplace, Mythical Marketplace 2.0, following the acquisition of DMarket. Similarly, the acquisition of ShortRound Games and Polystream proves advantageous for Mythical Games as a valuable enhancement to its gaming portfolio.

Challenges and Legal Dispute

Despite its robust financial standing, Mythical Games encountered significant challenges, including hurdles in user acquisition and an ongoing legal dispute involving three of its former co-founders.

The lawsuit filed by Mythical Games against these former executives alleges misappropriation of a strategic business plan, accusing them of diverting approximately $150 million funds into their new venture, Fenix Games, while still employed by Mythical.

Due to high user acquisition costs and the web3 downturn in 2022, Mythical Games made strategic adjustments. This included laying off 15% of its staff and canceling certain projects. The company redirected its focus towards more promising endeavors in the gaming landscape in 2023.

The company introduces a decentralized gaming application, Mythical Platform, harnessing the capabilities of blockchain tech to establish a gaming environment where players possess ownership of any assets they create or acquire. 

Blankos Block Party

Moreover, in 2021, Mythical embarked on a significant milestone by launching its inaugural game, Blankos Block Party, into beta testing. Functioning as an open-world multiplayer game and a platform facilitating the creation of games through NFTs, Blankos Block Party underwent developmental transformations.

Originally conceptualized with a focus on user-generated content (UGC), the game evolved into small, game-like levels during its development. This transformation contributed to the game's unique aesthetic and led to the formation of its distinctive IP.

Initially introduced as a PC game on its website, Blankos Block Party later achieved a milestone by becoming the first live web3 game on the Epic Games Store, marking a notable shift in its accessibility and reach within the gaming community.

Unfortunately, Blankos Block Party didn't attract as much attention as NFL Rivals, and obtaining precise figures is challenging since the game doesn't publicly release such data. ActivePlayer.io reports approximately 50,000 average monthly players for Blankos, a stark contrast to NFL Rivals' nearly 3 million players. 

Consequently, Mythical Games has opted for a comprehensive overhaul, rebuilding Blankos from the ground up and incorporating insights gained from its sister title. Upon release, Blankos will prioritize a mobile-first platform while featuring cross-play capabilities for PC users.

NFL Rivals 

In the spring of 2023, Mythical Games unveiled two additional games, one being the American football title, NFL Rivals. This venture saw Mythical Games collaborating closely with the NFL and Players Association to secure official team and player licensing.

The game has a Campaign mode for PvE matches and a PvP mode where players challenge AI-controlled versions of other players' teams. Mythical Games launched NFL Rivals on mobile platforms through Apple and Google.

The game avoids mentioning blockchain and NFT directly, using terms like tradability and marketplace instead. This strategy is similar to Reddit's "digital collectible" NFTs to avoid potential backlash. In a recent update, Mythical Games introduced NFT card purchases in NFL Rivals using an in-app purchase currency called Credits. This system is similar to the currency approach in games like Diablo Immortal, complying with Apple and Google's 30% fee on transactions.

In June 2023, the game garnered more than a million downloads just two months following its release on both Google Play and the Apple Store on April 26. By September, the player count had exceeded 2 million, and it is currently approaching the impressive milestone of 3 million new players. NFL Rival is undoubtedly one of the most downloaded and played web3 games.

Nitro Nation World Tour

Following the NFL Rivals, Mythical Games swiftly introduced the Nitro Nation World Tour (NNWT), which it soft-launched in May and achieved global availability in September. This racing game is collaborative with the original Nitro Nation developer, Creative Mobile Games, and boasts graphical enhancements over its predecessor. NNWT aligns with the street racing genre, akin to popular titles like Need for Speed, Asphalt, and CSR. The core gameplay involves collecting and upgrading cars, presenting an ideal context for incorporating NFTs. Notably, NNWT has garnered over 500k downloads on the Google Play Store.

In addition to NNWT, Mythical Games announced the development of Epic Spell Wars: Magic Fight, an NFT trading card game inspired by the well-loved franchise from Cryptozoic Entertainment. The game is currently in progress and is scheduled for release later this year.

Business Strategy and Ecosystem Development

Mythical Games has partnered with Burberry, DeadMau5, Quiccs, El Grand Chamaco, and the Miami Dolphins to generate interest in its game portfolio. The company actively participates in web3 events and occasionally hosts its own events. While its social media presence may not be daily, Mythical Games maintains an engaged online profile, covering significant events and interacting with its audience. The company has successfully advanced its blockchain tech and released more web3 games. By collaborating with contractor developers, acqui-hiring, and establishing partnerships, Mythical Games has expanded its ecosystem and diversified its game portfolio.

Financial Performance and Profitability Concerns

The company has demonstrated notable growth and revenue, partially attributable to the financial runway provided by investment funds. However, the proximity of Mythical Games to true profitability remains uncertain. 

An additional consideration is the decline in the value of its native Mythos Token, dropping from $1 to $0.31 since the launch of NFL Rivals. This fluctuation may pose a potential vulnerability in its ecosystem strategy.

Notably, in 2021, the company secured a $75 million investment to build a "Mythical Economic Engine." This engine was to assist aspiring game builders in creating NFT-based marketplaces without encountering regulatory challenges. Despite this, there is yet to be a tangible demonstration of this initiative coming to fruition. 

Additionally, Mythical Games' decision to migrate from Ethereum to Polkadot for its Mythos ecosystem raises questions about the wisdom of this move, with its ultimate impact yet to be revealed. Following the announcement in April, the Mythos token did not experience significant surges. In fact, it witnessed a steep decline a few days after, as we discussed above.

3. Limit Break ($200 Million)

Yoda’s Conclusion: Still with us but still no release🥲

Community: 🤩 

Opportunity: Chibi Digi Starter Packs NFT Drop

Playable? 🤷🏻‍♂️