Publication
Seeking game companies for a $1 million investment 🛰
Private investment in the game industry is difficult to secure, especially on reasonable terms. A group of investors is now seeking operating game companies with revenue and at least a modest profit.
Seeking game companies for a $1 million investment 🛰
Private investment in the game industry is extremely difficult to secure today—especially on reasonable terms.
The reason is straightforward. When the central bank’s key rate is high, money becomes expensive, and an investor has to compare every risky project with the return that can be earned easily from a bank deposit.
The situation is even more difficult for game projects without revenue. In my experience, private capital at this stage is now provided mainly through a startup- or venture-studio model: the investor does not merely finance the team, but takes the studio under its wing and becomes deeply involved in product development, business formation, and oversight.
Government support is not entirely straightforward either. A significant share of the available programs require private co-financing, and finding it for a project without revenue brings us back to the previous paragraph.
For operating companies, however, the situation is noticeably better.
💰 A group of investors approached me because they are looking for game companies with an established business and at least a modest profit. They are considering the purchase of a roughly 10% stake at a reasonable 3–4× valuation multiple. The target transaction size is about $1 million, adjusted where appropriate to the size of the business.
Jurisdiction is not critical, provided it is clear and acceptable for the transaction.
The investors have worked in the market for years. They do not intend to seize control, install their own people on boards, or tell developers how to make games. Their objective is simpler: invest in an operating business, benefit from its growth, and—where there are synergies with other assets—help the company scale faster.
In such cases, my role on behalf of Skolkovo is to keep the process constructive and transparent: align expectations in advance and reduce the risk of unpleasant surprises. In this particular case, I am confident enough in the investors and the absence of hidden pitfalls to publish this request openly.
So, I am looking for game companies that need capital to scale an existing business. If that describes you, or you know a suitable team, send me a DM ✍️
One more reminder: if you already hold Skolkovo participant status or plan to apply for it, there is a business angel investment reimbursement program designed to attract private capital. I discussed it in a previous post.