Venture funding for games 'in collapse'

Venture funding for games 'in collapse'
Will Freeman

By Will Freeman

April 23rd 2009 at 3:12PM

Private funding for games down 60 per cent in 2009

Games Investor Consulting's director Nick Gibson has expressed a belief that venture funding for the industry is in collapse.

"In the last four or five months there has been a collapse in venture capital and, more broadly, private equity funding for privately-held games companies," said Gibson in his business column for Develop.

"And I deliberately use the word collapse. Private funding for games companies worldwide since the start of 2009 is tracking down a staggering 60 per cent on last year and close to 70 per cent on the year before that.

While the games industry's reputation of resilience to the ongoing economic downturn continues to be reported, Gibson looks in detail at the real financial problems facing developers, looking to the future and offering venture funded studios advice on weathering the storm.

To read the full column, click here.