Different Investment Games

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Many investment opportunities involve engagement with games, each emphasizing distinct strategies and sectors. Here are some insights:

  1. Early-Stage Gaming Investments: This strategy involves investing in nascent game companies, often pre-seed or seed stage. These investments are high-risk but can lead to significant returns if the games become successful. Investors like highlight the importance of empowering creatives and creating platforms that enable game development by less experienced individuals 1 2.

  2. Gamification for Financial Planning: Gamification can help engage young people in investing by making financial planning more engaging and accessible. Initiatives like fintech apps that round up purchases and invest the difference aim to get people investing earlier, leveraging the compounding effect over time 3.

    Early Stage Gaming Investments

    Blake discusses the challenges and opportunities of investing in the early stages of gaming companies. He emphasizes the importance of empowering creatives with tools to compete with larger incumbents and highlights the success of platform publishers like Mvodu in the mobile gaming industry.
    Invest Like the Best
    Blake Robbins – Investing in Gaming - [Invest Like the Best, EP.180]
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  3. Investor Personalities and Game Choices: Games like chess, poker, and backgammon are often used by investors to understand risk tolerance and decision-making styles. Howard Marks notes that these games can provide insights into one's risk aversion and strategy preferences in investing 4.

  4. Dedicated Game Investment Funds: Some funds focus solely on investing in game studios, often at an early stage. These funds aim to create a diversified portfolio of early-stage game investments, increasing the likelihood of hitting a successful game. Examples include Play Ventures and Andreessen Horowitz's efforts to invest in gaming startups 2.

  5. Historical Reluctance in VC Investments: Historically, venture capitalists were wary of investing in games due to their hit-driven nature and the dominance of large publishing companies. However, shifts in the market and the success of platforms like Steam have changed perceptions, making game investments more attractive 5.

  6. Internet and Aggregation Theory: The emergence of platforms like Steam revolutionized game investments, enabling independent developers to thrive. This shift allows for a more democratized investment environment where revenue justifies external investment in game development 6.

These insights provide a broad view of how investing intersects with the gaming industry, from funding startup studios to using game-like elements to engage new investors.

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