A Look at the Massive Investment in Games Startups in 2008

The games industry has seen a surge in investment, particularly in the year 2008. This article explores the significant capital flow into games startups, highlighting key companies and the venture capitalists driving this growth.

Investment Highlights

The table provided showcases a remarkable amount of funding poured into the burgeoning "new" games space. While some companies on the list are established players, a majority received funding within the previous year.

• The author believes that a complete list of invested games startups would be significantly larger, likely exceeding double the size due to the numerous stealth companies yet to be publicly revealed.
• The table highlights the diverse nature of the games industry, including social games, casual games, virtual worlds, and MMOs.

Key Investors and their Portfolio Companies

Several prominent venture capital firms are actively investing in games startups. The table identifies leading investors and their notable portfolio companies.

• Accel Partners: This firm has invested in several notable games startups, including Playfish (acquired by Electronic Arts) and WeeWorld.
• Benchmark Capital: This firm has funded companies such as Gaia Interactive (a casual MMO) and Riot Games (known for League of Legends).
• Greylock Partners: This VC firm has invested in Social Gaming Network (a social gaming platform) and Kongregate (a platform for casual games).
• Sequoia Capital: This VC firm has invested in Challenge Games (a social games company).

Significant Investments in Virtual Worlds and MMOs

The emergence of virtual worlds and massively multiplayer online games (MMOs) has attracted significant investor interest. Notable examples include:

• RobotGalaxy: This virtual world company has received multiple rounds of funding.
• Gaia Interactive: This casual MMO company has secured significant investment.
• Metaplace: This casual MMO platform has garnered funding from Charles River Ventures.
• Sulake: This virtual world company, known for Habbo Hotel, has received substantial funding across multiple rounds.

Social Games as a Focal Point of Investment

Social games, particularly those for Facebook and other platforms, have emerged as a major area of investment. The table lists several companies that have attracted capital, including:

• Zynga: This social games giant has received significant funding.
• Playfish: This social games developer was acquired by Electronic Arts.
• Social Gaming Network: This social gaming platform has received funding from Greylock Partners.
• Challenge Games: This social games company has secured funding from Sequoia Capital.

A Growing Trend: Investment in Casual Games

Casual games, often characterized by their simplicity and accessibility, have also attracted significant investment. Companies receiving funding include:

• Big Fish Games: This casual games developer has secured funding from Balderton Capital.
• Kongregate: This platform for casual games has received funding from Greylock Partners.
• Playfirst: This casual games developer has secured funding from DCM.

Global Reach of Games Investment

Games investment is not limited to the United States. Companies from various countries, including Finland, Denmark, China, and France, have received significant funding.

• Sulake (Finland): This virtual world company has received funding from Benchmark Capital and others.
• Nonoba (Denmark): This casual games company has received funding from Mangrove Capital Partners.
• 9You (China): This virtual world and casual games company has secured significant investment from Temasek Holdings.
• Chapatiz (France): This virtual world company has attracted angel investment.

The Future of Games Investment

The continued growth of the games industry, coupled with the innovative potential of startups, suggests that investment in games will remain strong. The author emphasizes the significance of the emerging games space, highlighting the role of venture capital in driving innovation and growth within the industry.