In the first quarter, gaming VC activity may have finally settled into a new normal — though it’s a leaner, more selective market, according to an analysis by PitchBook.
Q1 funding dipped 3% QoQ to $1.2 billion across 134 deals, the lowest deal count since mid-2019. As early-stage investments continue to shrink, investors grow increasingly discerning, and the M&A and exit environment remain muted, there are still bright spots: investment surged into back-end gaming infrastructure and AI-powered platforms, with standout deals like Bria’s and Beamable’s Series As.
Meanwhile, leading platforms like Roblox and Discord doubled down on in-game advertising strategies, signaling a potential adtech renaissance. This report dives into the investment trends, macroeconomic headwinds, and key deals and players shaping the gaming sector. Overall, it was a mixed quarter.
Q1 deal activity extends the current equilibrium
Q1 activity in gaming investments
Gaming VC investment decreased slightly in Q1 2025 to $1.2 billion (-3% QoQ) across 134 deals
(-5% QoQ). Excluding Disney’s outlier investment in Epic Games in Q3 2024, deal activity has largely stabilized since H1 2023, averaging $1.3 billion across 172 transactions per quarter, albeit with pressure to the downside on deal volume.
Deal count in Q1 was the lowest quarterly figure since Q2 2019, underscoring that investors are increasingly discerning as the industry awaits the next platform shift, focusing on distribution innovation in the interim while grappling with the lack of breakout hits from exuberant funding between 2021 and 2022. Exit pathways remain largely blocked, with closed VC and PE exits generating $128 million in disclosed value across 13 deals.
Tariff headwinds shift
The quarterly breakdown of game deals.
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