Bitkraft Ventures Raises $275M to Support Game Studios and Platforms Amid Industry Challenges
Bitkraft Ventures, a gaming investor headquartered in Denver, Colorado, and founded by European entrepreneurs, is in the process of raising its third fund, amounting to $275 million. This fund will focus on making seed and Series A investments in gaming studios and platforms to bolster game production. The move comes at a time when investments in the gaming sector have declined by 72% year on year, as reported by PitchBook.
Founded by Jens Hilgers, a veteran in the games industry, Bitkraft boasts a portfolio of over 130 companies and manages assets worth more than $1 billion. Among its notable investments is Frost Giant Studio, which is working on a real-time strategy game titled Stormgate, following its involvement in creating StarCraft. The studio’s upcoming game has garnered significant anticipation and positive early reviews, representing the kind of companies Bitkraft favors investing in.
Other investments by Bitkraft include Anzu, an in-game advertising platform; Carry1st, a mobile gaming platform targeting the African market; InWorld, a social platform; Karate Combat, a martial arts league; and Immutable, the developer behind the crypto-based game Gods Unchained.
Hilgers mentioned that Bitkraft’s limited partner (LP) base consists of a mix of family offices and institutional funds, with a major global sportswear player also participating as an LP, although the specific name was not disclosed.
Detailing the investment strategy of the second fund, Hilgers stated that it involves backing around 30 to 35 companies with an average ticket size of about $4 million, allocating 50% of the initial capital and 50% for follow-on investments. This strategy has proven successful, with Bitkraft being ranked in the top decile in the latest Cambridge Associates ranking.
In comparing Bitkraft, one might liken it to Play Ventures in Singapore, which has raised $222.9 million across four funds and also invests across various types of gaming platforms.
