Emerging space: Blockchain gaming | PitchBook

The private markets are constantly evolving, and new spaces rise—then sometimes fall—in the span of a few years. Given this fluidity, it can be challenging to identify and track the most promising spaces of tomorrow. That’s why our analysts have developed a methodology to define and categorize these emerging spaces. In this post, we look at sports tech—just one example of a space that is quickly taking off.

Unless otherwise noted, data points included in this post represent live counts from the PitchBook Platform as of September 28, 2022. PitchBook’s data on companies, investors and deals is subject to frequent change. Where possible, we’ve linked to PitchBook profile previews, which provide a cursory sense of the types of robust data PitchBook clients have access to.

What is blockchain gaming?

Startups in this space are integrating aspects of blockchain technology into video games in an effort to alter gaming business models and increase player agency. Blockchain technologies, notably in the form of non-fungible tokens (NFTs) and decentralized autonomous organizations (DAOs), are seen as a way to disaggregate revenue streams away from publishers, giving more control and ownership to players. Blockchain gaming companies are either creating blockchain games or providing the infrastructure that enables them.

What is Ethereum?

Ethereum is a decentralized platform powered by blockchain technology. While it is most commonly known for its cryptocurrency ether or ETH, it can also be leveraged by anyone to create secured digital technology. Ethereum is often the blockchain of choice for developers in the blockchain gaming landscape, as it is largely considered to be the most secure, resilient and interoperable blockchain.

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Trending blockchain gaming companies

Sup Entertainment Software

HQ: San Francisco, CA
Leadership: Dom Hofmann, Founder
Latest deal: February 2022

Sup Entertainment Software is the developer of a community-crafted science-fantasy universe intended for non-fungible tokens (NFTs). The company offers decentralized science fiction projects where the community guides the story, fan-made projects that riff off the original non-fungible token (NFT) collection or include the non-fungible token (NFTs) as part of another game, allowing users to store and process blockchain without maintenance for as long as Ethereum does.

In February 2022, the company received $12 million in seed capital in a deal led by Paradigm. The funds will be used to scale as well as develop other projects and universes

Axie Infinity

HQ: Ho Chi Minh City, Vietnam
Leadership: Trung Nguyen, Cofounder, Chief Executive Officer & Board Member
Latest deal: April 2022

Axie Infinity is the developer of a gaming platform designed to let players earn in-game resources and trade them for real money. The company’s platform specializes in creating a digital pet community centered around collecting, training, raising and battling creatures built on the Ethereum network, enabling gamers to enjoy a quality gaming experience.

In April 2022, the company raised $150 million of Series C venture funding in a deal led by Binance. Animoca Brands, Andreessen Horowitz and Accel also participated in the round.

Animoca Brands

HQ: Hong Kong
Leadership: Robbert Yung Chief Executive Officer, North American Operations
Latest deal: September 2022

Animoca Brands is a developer of mobile games and applications committed to delivering digital property rights to gamers and internet users through play-to-earn economies and a more equitable digital framework. The company leverages gamification and blockchain to develop and market a portfolio of mobile applications, games and additional products aimed at educational learning, ensuring transparency, security and new business models.

In September 2022, the company received $110 million of development capital in a deal led by Temasek Holdings, Boyu Capital and GGV Capital. The funds will be used for acquisitions, investments and “popular intellectual properties” in a bid to further push the metaverse into public view.

Trending investors in blockchain gaming

AU21 Capital

HQ: San Francisco, CA
Deal count in blockchain gaming: 37
Latest deal in blockchain gaming: July 2022

Founded in 2017, AU21 Capital is a venture capital firm based in San Francisco, California. The firm seeks to invest in companies operating in the blockchain and artificial intelligence sectors. Some of the firm’s recent investments include Splinterlands a blockchain online trading card game and Blockchain e-sports gaming platform Colizeum.

Shima Capital

HQ: San Francisco, CA
Investments in blockchain gaming: 33
Latest deal in blockchain gaming: September 2022

Founded in 2021, Shima Capital is a venture capital firm based in California that seeks to invest in cryptocurrency and blockchain startups. In September 2022, they participated in the seed round for Sports Innovation Lab, the developer of a blockchain discovery engine intended to connect people with the games, projects and communities they love.

Binance

HQ: Hong Kong
Deal count in blockchain gaming: 28
Latest deal in blockchain gaming: September 2022

Binance Labs is an accelerator that takes an initiative to incubate, invest in and empower blockchain and cryptocurrency entrepreneurs and communities. The firm was founded in 2017 and is based in Hong Kong. Some of the blockchain gaming companies the firm is invested in include Community Gaming, Wincast and Planetarium.

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