Kenny Rosenblatt

Late Stage Gaming VCs: "We would be interested in companies generating $100M+ in annual revenue that are profitable." Early Stage Gaming VCs: "We would be interested in companies generating $100M+ in annual revenue that are profitable." #vctalk #joke

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"As we grew the game industry a hundredfold, 75% of the time investors could prove the game biz would always fail." — Bing Gordon, xCEO of EA and Partner at Kleiner, Perkins, Caufield & Byers. Mobile gaming has been declared dead more than once. Supposedly, it has matured again and it's time to move on to the next big thing. Yet Roblox revenue is up 31% year over year, and daily active users are up 27% (https://lnkd.in/gDvn5KeK). How can that be? Anyone with kids doesn’t need these Roblox numbers to see that the next generation consumes content differently. When they enter the workforce, they’ll spend on mobile games and apps, valuing this digital interaction more than previous generations and in ways we may not yet understand. I’m aware of today’s challenges—I feel them as a supplier to mobile gaming companies. But I’ve been in this industry long enough to know that real growth often comes from unexpected places. Analysts often do not include these unexpected forces in their predictions. https://lnkd.in/gp8vf9Dq

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Calling Investors: Invest in the original Xbox “Duke” controller… I am working with a new gaming peripherals company set to take the world by storm and they are looking for investors to join the team. Founded by Duke Schnepf, son of gaming visionary, and Xbox founder, Brett Schnepf, backed by multiple founding fathers of the Xbox, this company is pushing the boundaries of the gaming peripherals sector. Their journey began with Brett Schnepf, a luminary whose contributions to gaming history are etched in stone. As a founding member of the Xbox console team, Brett's design prowess shaped modern gaming, with iconic creations like the Sidewinder PC controller and the legendary Duke controller. Today, Duke Schnepf carries forth his father's legacy. Upside and a half! In late 2024, a major streaming platform will release a series chronicling the founding of a pioneering gaming console (can you guess which one) and the launch of Duke's ground-breaking products, offering an intimate look at the visionary minds behind this revolution. Looking for investments of $10K, $20K, $50K, $100K, $250, $500K, and $1M. Higher investments with equity shares are available for discussion. We foresee full returns and profits delivered within 1 year. If you're interested in being part of this exciting journey, please get in touch to set up a call ASAP. #Gaming #InvestmentOpportunity #Innovation #GamingPeripherals #TechInvestments #gamedev #investors #angelinvestors #gameinvestor #PEinvestment #AngelInvestment

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Sumo Digital announced a 15% cut in its workforce, roughly impacting 250 individuals. Among these 250 individuals was the team of Timbre Games, which also confirmed that the studio was being shut down. Timbre Games was founded in 2021 and made a part of Pipework Studios. Although Timbre had yet to launch any games, its website indicates that it was in the middle of two game projects. Unfortunately, game developers face more loss than the parent company when something like this happens. Who knows how Timbre's team might be coping after putting in millions of efforts to build the games and losing everything in a single blink? In their support, this is list 2 of some of the Timbreeos who were impacted by the closure. Every bit from the community counts, so requesting you all to help this reach recruiters and game studios currently hiring. Sophie Mallinson — In 2017, she was Arkane Studios' (Lyon) Narrative Designer who worked on Dishonored: Death of the Outsider and Wolfenstein: Youngblood. By 2019, she had become a Principal Narrative Designer for Arkane's Deathloop. It is quite interesting to note that after Arkane, she went on to work for EA on Star Wars and later for EA's own studio - Maxis Studios on The Sims Series. Nadia Lohan — With over a decade's worth of experience in Production, before Timbre, Nadia was a Producer at Blackbird Interactive and worked on Minecraft Legends. Notably, she has experience in the VFX industry and coordinated for blockbusters like Mulan, Guardians of the Galaxy, and Maleficent. Vivek Ramkumar — Here's a talented Game Designer who has worked on titles like Sleeping Dogs and Tryst, built his own first-person indie game, and has experience in LiveOps Design. Prior to Timbre, he was a senior Technical Designer for Relic Entertainment. Gerritt Turner — Before Timbre, Gerritt worked at Wizards of the Coast on a lot of Magic: The Gathering's writing, designing and overall creative. They even have an experience in Brand Writing for Hasbro. Yuliia Bocharova — Prior to Timbre, she was a Lead 3D Artist for Blackbird Interactive and worked there for 3+ years. You should check out her ArtStation portfolio: https://lnkd.in/gKEwykG5 Vincent-Gabriel Canadian — A talented VFX Artist who has worked for Studios like Frima, Behaviour Interactive, and Nesting Games. Vincent specializes in real-time VFX for video games! #layoffsupport

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Governments Target Gaming Addiction with Time Limits & Spend Curbs Is gaming getting out of hand? Governments are exploring: * Time caps to limit gaming sessions (like China's 1 hour rule for minors) * Spend restrictions to curb in-game purchases Read here: https://lnkd.in/dPeGfejh #GamingAddiction #DigitalWellness #GameCloud #LolzSoft

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Match3 is not the best game economy. I know some who would say it’s not even economy! Also, digital board games are just video games with terrible UX. Listen to the episode for more on these hot takes from me and the fellas.

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Dear Stretch Network Partners, Please allow me to inform you about additional changes that will take place in the global network on July 8. 🍀 All Heads-up tables will be removed 🍀 Badugi cash tables will be removed 🍀 Sonic cash tables will become 6-max 🍀 The minimum buy-in for Sonic Omaha cash tables will be 20 BB 🍀 Sonic Omaha 7 card cash tables will be added These changes apply only to cash tables and only to our Global Network. In your local networks, you decide your product strategy, but we would be happy to assist you in managing your local networks as well. If you need our help, please contact us. The above-mentioned changes are part of the new strategy for the Stretch Network Global Network, which prioritizes the comfort of novice players and casual traffic to maintain the proper balance of our ecosystem between amateurs and professionals. Caring for the ecosystem of the Global Network is our priority. The changes we are implementing now and will continue to implement will significantly improve the user experience for your players, extend their LTV, ARPU, and, of course, Revenue.

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Twitch's “Elusive Profitability”: Analyzing 10 Years Post-Amazon Acquisition Despite being acquired by Amazon in 2014 for $970 million, Twitch continues to navigate challenges on its path to profitability. This analysis highlights the platform's financial details, operational costs, and strategic initiatives within Amazon's broader ecosystem. 1. User Engagement and Content Volume     Active Users and Streamers: Twitch has grown to over 140 million monthly active users and 9 million broadcasters by 2023, emphasizing its dominance in the live streaming sector.     Streaming Hours: With an average of 2.1 million concurrent viewers and 3 billion watched hours per quarter, Twitch's scale is impressive but also costly in terms of bandwidth and moderation. 2. Revenue and Operational Costs     Revenue Streams: Twitch's primary revenues come from advertising, subscriptions, and virtual goods, totaling around $2.3 billion in 2020.     Infrastructure Costs: The platform spends approximately $1 per 1,000 viewer hours on bandwidth alone, leading to substantial annual expenses.     Content Moderation Costs: Investments in AIdriven tools and human moderators add millions to Twitch's operational costs annually. 3. Competitive Pressures     Rival Platforms: Twitch faces competition from YouTube Gaming and Facebook Gaming, which offer better terms to attract top streaming talent.     Acquisition Costs: Retaining and attracting top streamers involves costly contracts and partnership deals, often running into millions annually. 4. Amazon’s Strategic Integration     Twitch Prime: While Twitch benefits from integration with Amazon Prime, the direct profitability impact is unclear.     Advertising and AWS: Opportunities for synergy with Amazon's advertising network and AWS services are promising but underutilized. 5. Future Monetization Strategies     Innovative Advertising: There's potential for Twitch to improve its advertising model by leveraging Amazon's technology for more targeted, interactive ads.     Content and Geographic Expansion: Broadening content to include nongaming categories and expanding into untapped markets like Southeast Asia ($2.5 billion TAM), Latin America ($1.8 billion), the Middle East ($1.2 billion), India ($2.0 billion), and Africa ($0.8 billion) could significantly increase its user base and revenues.  Twitch's journey under Amazon highlights the complexities of scaling a livestreaming platform profitably. While it benefits from Amazon's resources, Twitch must innovate and expand strategically to turn its impressive engagement into sustainable profits.

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Investors: Gaming opportunities are on the rise! The last three years were a Period of Complacency: ▪ Record revenues during the pandemic ▪ Led to over-hiring & less innovation in every way, ▪ With unfortunate layoffs across many AAA studios as a result. The next three years are a Period of Disruption: ▪ New development pipelines with Generative AI & other tech ▪ New distribution platforms with Roblox, Fortnite & more coming ▪ New marketing approaches via Influencers & Community ▪ And the gaming audience is still growing, and global. Layoffs from AAA game studios led to experienced talent on the street, leading to new and interesting Game Dev Startups forming. From this period, multiple new billion dollar game companies will emerge. Recognizing OPPORTUNITY, notable dedicated game investment funds are being announced. THIS MONTH: $1 Billion of new capital for games ◾️ A16Z GAMES announced a 2nd gaming fund of $600 million, beyond previous $75M for Speedrun III applications. ◾️ BITKRAFT Ventures announced a 3rd gaming fund of $275 million. ◾️India’s Centre Court Capital announced new $42MM ◾️As did Turkey’s Laton Ventures with a new $35MM fund AGAINST BACKDROP OF: ◾️Disney investing $1.5 BILLION into Epic Games - gaming ecosystems are the future for the most valuable IP. ◾️Saudi Arabia’s Public Investment Fund earmarking $38 BILLION of investment for gaming and esports - to future proof their economy. LOCALLY: ◾️Closer to home, Georgia benefits from abundant tech & creative talent, low cost of living, biz friendly environment, PLUS specific tax incentives for game development projects.  ◾️Based on my experience, it is a uniquely great place to make uniquely great games. ➨I’m personally very invested in a new Georgia-based game development venture, that will launch under the Ghost Gaming entity. ➨If you are a Qualified Investor and want to learn more about this or other gaming investment opportunities please hit me up directly. * Credit to Joost van Dreunen newsletter & CB Insights for chart Nabil Ismail Asante Bradford Grant Wainscott Andrew Chen Andrew Greenberg Jens Hilgers David Schulman Andrew Steinberg Shachar Oren Brian Zwerner Sean O'Brien Michael Cohn Frank Patterson Joe Yuan Christopher Klaus Randy Davidson Brian Grayson Julian Caggiano Travis S. #gaming #esports #investing #vc #angelinvesting

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Is the gaming industry bouncing back? Andreessen Horowitz is betting on it and just closed $600 million for its second gaming fund. However, to be fair, the $600 million is part of a $7.2 billion raise. Fifty percent is going into the a16z growth fund, 25% into AI and AI infrastructure, 10% into 'American Dynamism,' and another 10% into the gaming fund I mentioned in the headline. 'Survive till '25' is a mantra I often hear at gaming conferences. Since 2022, the gaming industry has seen an unprecedented number of layoffs, leaving too many talented people jobless. Some have started their own companies, while others have found jobs in newly-formed studios. Companies like Andreessen Horowitz seem to position themselves to capitalize on the upswing. 🤔 Do you think this fundraiser is a leading indicator that gaming is on its way up again, or is 10% not a vote of confidence but a cautious bet? I'd love to hear your thoughts and discuss in the comments 👇 Did anyone catch my 'light at the end of the tunnel' analogy? 😅 Link to the full article in the comments.

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Metacore earned €162m in revenue and posted operating losses of €5.6m in 2023. Revenue is up 26% year-on-year

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Had a great time joining Niko Vuori and Devin Becker on the Naavik emergency podcast to discuss the SEC’s move against OpenSea and its potential impact on the web3 and gaming industries. We covered a lot of ground, from the implications of NFTs as securities to what this means for game developers and investors. Check it out if you want to dive into the latest developments in the space!

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Exposing the Dark Reality Behind Roblox: Inflated Metrics, Child Safety Concerns, and Insider Sell-Offs Hindenburg Research recently published a report with shocking allegations against Roblox. The following points summarize the alleged findings from their investigation: Inflated User Metrics: Hindenburg’s report suggests Roblox may have significantly overstated key metrics: Platform user numbers appear inflated by 25%-42% or more. Engagement hours could be exaggerated by over 100%. Child Safety Concerns: In-game research by Hindenburg reveals a disturbing, unsafe environment, including: Exposure of children to explicit, violent, and abusive content. Rampant grooming, pornography, and predatory behavior on the platform. Roblox's former senior product designer stated, "Leadership doesn’t want to limit engagement even if it compromises safety." Social Media Risks: Hindenburg reports that Roblox’s social features lack robust screening, allowing predators to target large numbers of children. Games like “LGBTQ+ Vibes” (with over 40.6 million visits) are accessible to all ages, where users reportedly exchange explicit content and hateful language. Financial Red Flags: Consistent net losses: Roblox’s last twelve months show losses totaling $1.07 billion. Premium stock valuation: Roblox trades at ~8.6x sales, a 57% premium compared to industry peers. Insider Sell-Offs and Departures: Hindenburg reports insiders have sold ~$1.7 billion in stock since the company’s 2021 listing, with ~$150 million sold in the last 12 months. Several senior executives, including the CFO, have reportedly resigned over the past year, raising concerns about internal stability. Summary In pursuit of “growth at all costs,” Roblox appears to inflate key metrics while allegedly compromising child safety, raising concerns over both user security and investor trust. If Hindenburg’s claims are true, this goes beyond just numbers—it’s about the safety of millions of kids on Roblox. Inflating stats might mislead investors, but allowing young users to be exposed to harmful content is a serious issue. Putting growth ahead of safety and honesty damages trust and risks real harm. This points to a real need for Roblox to take responsibility and ensure a safer platform. #roblox #Hindenburg

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How to break up Google! Here's an interesting idea... - A judge ruled Google is a monopoly, sparking discussions on potential remedies. - Investors are considering a "crazy" idea: making Google’s search index publicly available. - This would level the playing field by allowing competitors to use Google’s extensive index. - Google's search index consists of data from other websites, which Google doesn't own. - An open index could lead to innovative search engines and competition. - Access could be managed through an open API, possibly with fees for large commercial players. - The idea is compared to the mobile virtual network operator (MVNO) model in the telecom industry. https://lnkd.in/g4NRTDyM

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Thanks, Anton Slashcev; teaming up to create this decision tree for game development was a pleasure! The tree outlines crucial questions studios should ask, from FTUE completion and player engagement to long-term goals. Each factor clarifies where improvements can be made, helping you decide whether to iterate, pivot, or cut losses. Data and feedback should always guide your decisions. It’s essential to stay agile and make informed choices to ensure the success of your game! 🚀🎮

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BR1: INFINITE is a real money shooting game based in USD. Pay $1 to spawn and earn $1 for every elimination in-game, servers range from $0 - $10, (i.e. if you play in the $0.25 game mode it costs $0.25 per spawn and you earn $0.25 per elimination). Think about it as the overlap of the 'ante up' nature of poker, crossed with traditional shooting games. Functions are designed not just for gamers, but for game investors who will never play the game but instead manage athletes. - Stake athletes entries in games and automatically get a fixed % of their earnings. - Rent out in-game assets that give players an increased earnings bonus in-game. Here's a sneak peak from the beta, what do you think? 👇

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📍 2024 Drake Star Global Gaming Report ➡ Q1 2024 Summary 2024 has started on a strong note with multiple high value deals and the momentum extended in early Q2 with Embracer continuing to divest major businesses. Existing and new VCs continue to raise more capital focused on gaming investments (A16Z’s Gaming Fund II: $600M and BITKRAFT III: $275M) and public markets have improved since bottoming out in October last year • With 47 announced deals and disclosed deal value of $2.4B, M&A activity continues to pick-up and was higher than any quarter last year. CVC/Haveli acquired Jagex ($1.1B) and Take-Two picked up Gearbox from Embracer ($460M). Volume in the mid to small size deals segment with mostly undisclosed deal value increased significantly • Private financings reported a notable uptick in Q1 with over $2.4B raised through 188 deals, reversing a downward trend in deal volume since mid 2022. Disney invested $1.5B in Epic Games, Build a Rocket Boy raised $110M and True Gamers raised $45M • Early-stage financings continue to be the major portion of total deals while the mid to late-stage deal activity remained low. With the recent upswing in the blockchain market, early-stage blockchain deals were 40% of the total deal volume. For investments over the last 12 months, BITKRAFT led the VC league table, followed by Andreessen Horowitz, Griffin Gaming, Play Ventures and Vgames ➡ 2024 Outlook With a strong start of the year, we expect M&A activity to steadily increase in 2024. Savvy/Scopely, Tencent, Take-Two and Playtika are expected to be some of the active buyers. As we predicted last year, PE firms’ interest in the gaming sector has increased (i.e., Jagex/CVC deal) and given the attractive public company valuations, we except several acquisitions and take-private deals to be led by PE firms in the coming quarters • With funding trends finally breaching the downward trend and growing for Q1, we expect overall growth in private financings during the year. While early-stage companies will continue to dominate the deal volume, we expect a modest increase in mid / late-stage deals. AI, mixed reality, platform and tools continue to be hot segments   • We saw the first successful consumer tech IPO in Reddit this quarter and we anticipate that several IPO ready gaming companies such as Discord and EPIC are starting to plan for a listing in the second half of 2024 or 2025 

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