Data reveals a significant 57 decline in VC investments for blockchain games during Q1

The beginning of the year was tough for the blockchain gaming industry, with a substantial drop of almost 60% in venture capital deals, amounting to $288 million, indicating a sense of wariness among investors.
Developers in the blockchain gaming sector are experiencing a combination of caution and hope, as evidenced by a decrease in venture capital deals in comparison to previous quarters. According to data compiled by DappRadar, the industry received $288 million in funding in Q1, marking a significant 57% decline from Q4 2023.
The analyst highlighted that only two significant deals shaped the investment landscape during this period: Parallel Studios and Gunzilla Games.
In March, Parallel Studios obtained $35 million in funding, with support from Distributed Global, The Operating Group, VanEck, Solana Ventures, Base Ecosystem Fund, and Amber, among others. Although the developers did not disclose specific details regarding the use of the funds, it seems that the studio aims to expand its presence across various platforms, with the Epic Games Store gaming marketplace being a crucial milestone for expansion.
VC deals into blockchain games | Source: DappRadar
Gunzilla Games also raised $30 million for its upcoming project, Off the Grid, a free-to-play battle royale game. The investment, co-led by CoinFund and Avalanche’s Blizzard Fund, is also focused on expanding the game across multiple gaming platforms, including Sony PlayStation, Microsoft’s Xbox, and PC.
Despite investor caution, the influx of investments into new game development and technological advancements “shows that there’s a lot of hope for what’s next,” Gherhelas noted.
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