Gaming
An industry expanding in all directions in Europe
Last updated: 11 Nov 2021
Market 101
Games have quietly been liberating themselves from the basements of spotty teenagers. They’ve made themselves more accessible by embracing streaming rather than downloads, and phones instead of computers. And they’ve doubled down on their real strength: facilitating authentic, spontaneous interactions. When the pandemic hit, everyone from congresswomen to YouTube stars hopped on the gaming bandwagon: mission accomplished.
Now companies are betting that games are here to stay because they complement, if not replace, our social media addiction. Incumbent gaming companies and tech giants have the audience and capital to quickly bring games to market. Nonetheless, many rely on startups for quality content and software. Together, they’re working to make games more accessible than ever before.
Early stage market map
Key facts
€23.3bn
size of Europe’s gaming market1
44
% of total revenue generated by console games in key European markets (France, Germany, Italy, Spain, UK)2
24
% increase in in-app purchase revenue since the start of the pandemic3
Trends to watch
1. What’s this thing called the metaverse
→ Many believe that the future of gaming lies in the concept of the metaverse, where we can form bonds through communities, attend events and spend money much like in our real world but using virtual avatars.
→ To best take advantage of this trend, startups are increasingly developing games that emphasise interactive social elements and usergenerated content.
2. Behind the scenes
→ Social-centric games open up new opportunities for gaming infrastructure and integrations, from audio to barring bullies and bots.
→ Rather than building everything in-house, gaming studios are increasingly looking to specialised startups as their software suppliers.
3. The future of VR
→ VR has been touted as the next big thing for some time, but exponential growth has failed to materialise.
→ Startups are working to make VR devices more comfortable and more accessible, and to define their best use cases — from immersive education to virtual tours of historic sites.
4. The gamification of everything
→ Games for learning and acquiring new skills have been around for some time but the pandemic has given them a new push.
→ Startups are now extending the logic of gamification to other applications, from physical therapy to mental health.
Startups tracked by Sifted
Investors by type
Sifted take
Startups have so far mostly worked on creating games that are compelling enough to escape the real world for a while. The next challenge will be to go into the metaverse, blurring the boundaries between our real and virtual worlds, for example by integrating existing social media apps with games and creating monetisation schemes for them.
Rising stars
Lets users create 3D worlds based on voice commands. Instead of commissioning the animation of specific models, creators can access the startup’s extensive library of 3D assets with in-built natural behaviors. Having participated in Ubisoft’s Artificial Intelligence Accelerator at Station F and Techstars’ London accelerator programme, the company works with the likes of Ubisoft, Instagram, Facebook and Warner Music.
Round
Seed
Valuation
€3m
Date
2020
Size
€600k
Enables advertisers to place in-game audio adverts that players can listen to without interrupting their game. Cofounders Christian Facey and Wilfrid Obeng previously worked at Google, AudioMob’s biggest investor.
Round
Seed
Valuation
8.3m
Date
2020
Size
1.8m
A games development studio currently working on Life Beyond, an online multiplayer game combining social connection with adventures and exploration. Darewise was cofounded by Benjamin Charbit and Samuel Kahn, both of whom previously worked at Ubisoft.
Round
Seed
Valuation
€15m
Date
2020
Size
€3m
Early stage startups to watch
Anything World
Game developer tools
-
€600k
-
AudioMob
Auxiliary gaming services
Funding & monetisation
€17m
€14m
-
BeyondPlay
Auxiliary gaming services
Social gaming
€2m
€2m
-
coherence
Game developer tools
€2.6m
€2.3m
€11.5m
Colossi Games
Game development studio
€2.7m
€2.1m
€10.8m
Darewise Entertainment
Game development studio
€3.6m
€3m
-
Dixper
Auxiliary gaming services
Funding & monetisation
€700k
€500k
-
Doppio
Game developer tools
€1m
€1m
€4m
Five Vectors
Game developer tools
€1.9m
€900k
€8m
Genba Digital
Game distribution platform
€1.6m
€600k
-
GoBubble
Auxiliary gaming services
Content moderation
€1.2m
€700k
-
Maze Theory
Game development studio
€1.3m
€1.3m
-
Neopolis
Game development studio
€2.5m
€2.5m
-
Nware
Auxiliary gaming services
Cloud gaming
€350k
€100k
-
Omeda Studios
Game development studio
€2m
€2m
-
Originalgames
Gaming
€5.5m
€5.5m
-
Quicksave Interactive
Game development studio
€1.7m
€1.3m
€5m
Savage Game Studios
Game development studio
€4.4m
€4.4m
-
Stakester
Auxiliary gaming services
Social gaming
€6.9m
€3m
-
Sugar
Auxiliary gaming services
Funding & monetisation
€1.8m
€1.8m
-
The Breach Studios
Game development studio
€3.5m
€3.5m
-
U24 Solutions
Game development studio
€1m
€650k
-
VRee
Game developer tools
€650k
€350k
€3m
XR Games
Game development studio
€6m
€1.8m
-
Europe’s success stories
Who early stage startups are up against
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
→ Offers a platform for teachers to create online quizzes and educational games
→ Saw revenues of €38m in 2020, a 247% YoY increase, with a market cap of €1.9bn
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
→ Games developer and publisher for mobile games focused on free-to-play, casual gaming
→ Market cap of €659m
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
→ Games developer and publisher which developed the world’s largest free-toplay massively multiplayer online role-playing games,RuneScape and Old School RuneScape
Sources
Research reports
Global Games Market Report 2021 | July 2021 | Newzoo
Intro to the Metaverse | 2021 | Newzoo
1 Key Facts - Video Games in Europe | 2021 | ISFE
Video gaming in lockdown | September 2020 | ISFE
3 Covid-19's impact on the gaming industry | 2020 | Unity
News articles
Digital downloads jumped 47% across Europe in 2020 | February 2021 | Games Industry Biz
VCs see opportunities for gaming infrastructure startups and incumbents | May 2020 | TechCrunch
Video games want players to stay beyond Covid | May 2020 | Sifted
5 top gaming investors explain how the pandemic is reshaping MMOs and social games | April 2020 | TechCrunch
A multiverse, not the metaverse | February 2020 | TechCrunch
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